The only source of water in that area is from the pump body itself and is making its way out via either a damaged shaft seal or a freeze crack. If the budget allows this would be a great time to consider a new MMI 502 flange pump.
https://moyermarine.com/product/mmi-...p-csob_00_365/
You'd better check you oil for water contamination too.
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Neil
1977 Catalina 30
San Pedro, California
prior boats 1987 Westsail 32, 1970 Catalina 22
Had my hands in a few others
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