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If in working condition try listing your hotwater heater on a classified ad or material exchange site. You never know who might be willing to reuse it.
Hot water heaters that are not worth repairing should be passed on to a scrap metal dealer rather than land-filled. See the 'Scrap Metal' topic: https://recyclopedia.org/testing/1/scrap-metal for more information.
Some dealers offer free pick-ups and some charge a fee to collect it.
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