If the boiler is supplied with a Large Pipe, the water does dissipate after 57 tiles. If supplied with a Small Pipe, it dissipate after 46 tiles.
Pipes can not be built through a Perimeter Wall (or Water), and building a Perimeter Wall over any existing pipe will remove it. However, the hot water pipe can cross or follow Large Pipes and Small Pipes.
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Hot Water Pipe
