Is this Linda Stewart formerly of Scottsdale, AZ? Probably, and if it is a State/Reliance electric water and the element was recently changed, thenthey installed the wrong element and it is rusting and creating the discoloration.: Rust has been showing up on white clothes and on some of my kitchen utinsels. I checked with the water quality people with the city and to their knowledge there isnt a problem with rust in the water in our area. Could it be from my hot water heater?