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Tip: Check your local codes before beginning any project.
To remove your old water heater, turn off the gas, etc. and then the water.
Hook up a water hose to the water heater drain valve, open the valve and drain the water out.
Expert Tip: Drain as much water as possible out of your tank before you try to move it. It will make your job a lot easier.
Older houses have a tempering tank (which looks like a water heater). It brings water in from the outside and holds it in a tank to bring it to room temperature, and then it goes to the water heater and heats it.
Use a rotating pipe cutter (called a close quarter cutter because it can be used in tight spaces) to cut off the cold water tube. Be sure and have a bucket on hand so that you can catch water that's still left in the pipe.
Do the same to the hot water pipe.