The water heater bypass turns off cold water to the water heater tank, so when winterizing, along with the check valve on the hot water outlet of the water heater tank, you can drain the tank by removing the anode and no antifreeze will enter the water heater tank. If there is crud clogging the check valve, you will not be able to get hot water out of the water heater tank. It will need to be removed and cleaned or replaced in order to fix this issue. The picture below is the one line diagram I drew up of our plumbing behind the convenience center, looking at it from behind the wall, and it likely will be the same as yours. The blue lines in the drawings of the valves indicate the normal water flow path, so when the water heater bypass valve is turned to bypass, it is connecting the hot water side of the system to the cold water side, so when winterizing, you don't need to separately need to put antifreeze into the hot side too.
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Bob & Becky
2012 3402RL
2012 Chevy 2500HD D/A CC 4WD
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