Hot water heater condensation can scare you when it happens. It may appear that your tank is leaking.

Sometimes when you run a lot of cold water into the tank, for instance when it is used quite a bit, you will get condensation that drips onto the floor. How can you tell if it is condensation?

First, it will be a minimal amount of water and it will stop when the tank warms up. Wait a few hours and see if the water is still dripping. Is it gone? Good, it dried up and you don't have a leaking hot water heater after all.

Is it still dripping after a few hours or the next day? You're sure the water in the tank is hot and you still have a drip? This is not good news. See the article 'Leaking Water Heater Tank' and see if it is your tank that is leaking.