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Problem solved - the "T" connecting the expansion tank to the heater was steel which had rusted. Replaced it and water no longer rusty.

OK I will try that.

The whole house is PVC. Heater bought new at Lowes - I picked it up myself and looked new when taken out of the box. The tee connecting the expansion tank to the heater is steel and is attracted to a magnet. I will have this checked for corrosion. This was the same tee used for 5-6 years...

Hello everyone - thanks in advance for any help/suggestions/advice. I don't know a lot about water heaters but am slowly learning as I go. About three weeks ago, I had a brand new Whirlpool 40 gal electric water heater installed. About a week later, I noticed brown rust colored water coming...