I found the water control valve and sure enough the elbow was rotted. I replaced it and am still having the same issue. I checked the valve and it is properly moving. (not sure if it's stopping the water flow, but the lever is moving)

I'm going to put a vacuum pump on the control system and check for leaks. I'm assuming that something is leaking pretty bad.

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1990 190e 2.6 (About to have a Kompressor )