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Water Heater hot water smells bad

01 - Hot and Cold Water is Producing a Rotten Egg Smell

The rotten egg smell is caused by hydrogen sulfide in the water supply. Since this is from the water supply you will need to contact your local water treatment expert for water testing and treatment options.
Common

02 - Water Heater Anode Rod

The water heater uses an anode rod to help protect the tank from corrosion. It is often refered to as a sacrificial rod because its purpose is to attract minerals that would normally corrode the tank. In some cases certain chemicals and minerals in the water supply can cause the rod to produce a hydrogen sulfide gas that can make the hot water smell like rotten eggs. Try flushing the tank and changing the anode rod. If you have a magnesium rod you can try using a zinc or aluminum rod instead to get rid of the smell.
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Less Common

03 - Anode Rod Reacting to the Water

The water heater uses an anode rod to help protect the tank from corrosion. It is often refered to as a sacrificial rod because its purpose is to attract minerals that would normally corrode the tank. In some cases certain chemicals and minerals in the water supply can cause the rod to produce a hydrogen sulfide gas that can make the hot water smell like rotten eggs. Try flushing the tank and changing the anode rod. If you have a magnesium rod you can try using a zinc or aluminum rod instead to get rid of the smell.
Less Common