allis c final drive lube

I have allis c that I was checking the lube in the final drive units and when I pulled the plug out on one side, the lube came out but on the other side lube and water came out. I"m wondering how water would get in the final drive on the one side? I pulled the cover off the side that had water and emptied out the water. Want to put new lube in - what is recommended for lube in the final drive and what would be recommended that I use for a gasket for the cover - if I can"t locate a gasket. Would some type of gasket sealer work? Thanks for any and all responses.
 
clean the pan face real good and make sure its flat. Put a beed or RTV in the pan that is 1/8 inch tall so it will squeeze when installed. I personally like ethe oragne stuff that says "rated for sensors" or something like that. YOu can get it at Auto Zone. Takes about a quart of 80-90 gear lube or 75 w 140 if you wish, thru the plug hole after pan install. Some use straight 140 wt, but that will have more trouble getting up to the top bearing, etc. Water can get in over the years. Probalby thru the seal in the brake housing above. Common for that seal to also leak gear lube into the brake area.
 
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