Hilux 3 ltr turbo help

[H1TMAN]

Hey guys, Helping a friend with his hilux.
Where the oil filter is, the jacket cover its attatched to has a rust hole in it.
Water pissed out of the rust hole, I have taken the cover off and its stuffed- my question is, if thats were the oil filter is then the water being there is bad isnt it?
What would the problem be?

[kickstartRA28]

Some vehicles have a water filled housing that the oil filter screws onto, if this is what youre talking about, maybe that needs to be replaced. My 4 cyl AX telstar had one I used a screwdriver and hammer to remove oil filter and put a hole throught it, poured out water.

[H1TMAN]

Ah ok thankyou, I have removed it for replacement but wasnt sure if it should be filled with water or not.
Thankyou very much!
+ rep!