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Is there supposed to be a drainage hole below the fuse/relay box that will allow any water in the engine compartment to drain out or this a design flaw?? Not sure if they ever changed but I have a '72 w/1.7 FI.
The water pan and funnels are working but there are still some spaces that allow water to enter.
Every time it rains I get water pooling there. It drains VERY slowly if I dont sponge it out. There is some rust beggining to form where the water pools.
I am concerned that this may be what is responsible for the rust forming under the drivers side rocker and on the door sill. There is enough there that I may have to change my mind on whether this vehicle is worth restoring!!

Yes, there is a small drain hole on each engine shelf. Originally, they came with rubber nipples which plug up instantly so rip them out. Keep the holes clean and free of debris and when you go around a corner they drain.
Change the battery to a gel type so battery acid doesn't leak out and rot out the long.

Thanks. do you think that pluggeed drain may be responsible for rust on drivers door sill or do I have other problems?

Gel battery comes right after the new rubber!