Too tight might be the problem. The gaskets on a bucket spigot have an ideal tightness range. I would back off the nut, put some water in the bucket & tighten 1/4 turn at a time until the leaking stops. It would also be a good idea to sand the edges of the holes to remove any burrs.
I have three buckets with spigots (which I use for fermenting or cleaning) and go through this tightening process every time I dismantle them for cleaning. [The glass carboy vs Better bottle vs bucket debate is one of those things that will never die, because there advantages & disadvantages on all sides.]
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Last edited by david_42; 06-20-2007 at 02:41 PM.