New user..... water pump question

[North_of_60]

Hello, I have a quick question on my 77' 70 HP Evinrude. I am rebuilding the water pump, and the seal at the top of the housing does not contact the drive shaft, the old seal was the same way, and the two others I have tried are also like this. Will this not cause a water leak around the drive shaft ??? or is this made like this. Please help !..........

Thanks.......