I have a 94 merc 125 outboard. Dropped the oil a couple weeks ago and it had clear water that came out first so I changed the oil ran it and checked it and it seemed slightly milky. Took it to the shop and had it pressure and vac tested and it tested great, they filled it with merc gear oil and I ran twice over the weekend dropped it today and it seemed milky. Mechanic said that if it passed the two tests the only thing that could let water in would be washers and now it will take 5-6 oil changes to completely clear out water. By the way what color is merc oil out of the bottle-I'll post a pick of what it looks like to make sure-reason I ask is all the other gear oil I used was green.
Heres a couple of pics-sorry if not clear best I could get.
Heres a couple of pics-sorry if not clear best I could get.