The water was sitting in the outside part? Lots of units use that water to help cool the condenser coil by splashing it against it. If you have water dripping inside it just needs to be tilted slightly. Keep in mind that dry mode will actually allow for 3-4 degrees of over cool as well, and again it's just slowing the fan down and longer cycles. The dehumidifier is adding heat as well, great for heating in winter though as it's cheaper per btu than resistive heat. This is why I shut the thing down in the summer and head outside lol. I'm a refrig. Mechanic and even I threw in the towel lol. I run chilled water but have no AC, it would look rather suspicious running one in a garden shed lol.