<VV> Water from carb base/ & 1/4 panel interchange

[David Houston]

My neighbor and fellow corvair owner recently purchased a 1962 Monza SW that had borne the brunt of a lifetime of  NE winters. Mechanically it runs well but he showed me what he thought was a fuel leak at the base of the carburetor and intake manifold. It was water, not fuel, that was running out the base. We removed both carbs for a rebuild and discovered that a butyl/gasket compound was used on a prior removal/rebuild. Is this water a common byproduct of the combustion process or caused by the lack of gaskets?
Secondly, the left rear 1/4 panel is rusted out very badly from the wheel well to the bumper. I looked at the 1/4 panel of a 1962 700 sedan donor car. It appeared that the sedan panel will replace the stationwagon panel. Are we correct on this observation?