"The diesel and water don't mix"
NOT so.

Water to a small amount dissolves in diesel
Diesel to a small amount dissolves in water
Emulsions are formed between the two phases of oil and water ... and
disperse throughout the oil

Only FREE water doesnt mix with water as it has gravimetrically
settled out of the oil due to gravity.


THREE phases of water in oil: Free water, dissolved water, emulsified
water.