I never heard of that either, but there are two things I would check, assuming it’s the standard Saginaw pump/reservoir set up:
- Make sure the fluid level isn’t overfilled, the dip stick is on the fill cap.
- you might have a leak in the power steering fluid cooler, which sits below the static water
line at rest, and water
is forcing its way into the steering fluid.
Depending on the outdrive you have, cooling
water is taken in thru the transom assembly, and runs along the port side of the engine block on its way to the sea water pump
. Midway along the block is the location of the power steering cooler, a small black cooler about 7” long with water hoses in and out on each end, and the oil
inlet and outlet on top. As the oil
is on the return circuit from the steering servo back to the reservoir, there is no oil pressure to speak of.
I suggest removing the oil lines from the cooler and splicing them together. This will allow you to run the engine and see if the problem continues....and you might see water coming out of the now open oil cooler connections.
Wouldn’t hurt to check for water in the fluid reservoir as well.