Water can come from a car's exhaust for several reasons:
1) The catalytic converter converts exhaust gases but also produces water vapor as a byproduct, and droplets may fall from the tailpipe.
2) When the engine undergoes combustion, it produces water vapor along with other gases. When the engine cools, the water condenses and can drip from the exhaust.
3) A hot engine emitting exhaust into cold air can cause water vapor in the exhaust to condense into liquid water droplets exiting the tailpipe.
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