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I recently installed a new water heater tank with an expansion tank (previous owners did not have an expansion tank that was ~20 years old). I believe we have an open water system to the county utilities since I have been seeing our water meter flow backwards with no open faucets inside the house. I have a Flume leak monitor setup as well and it’s indicating a leak until I shutoff the supply to my water heater (in the diagram).

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I have a few questions about this setup. Since it seems there is nothing preventing the backflow of water into the county water supply, do I even need an expansion tank? If for some reason it’s still a good idea to have the expansion tank, should I need to install a backflow preventer somewhere? If so, where can I install?

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I’m not really concerned about the detected “leak” from Flume as I am making sure I’m not potentially hurting any part of my plumbing. Home water pressure is 60 PSI and I’ve matched the expansion tank to that.