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An 1/8" hole on the outside has all the packing material between it and the perforated tube, it is very far back in the system and is a tiny hole. You will not hear it at all, most factory systems have these "weep" holes to keep them from rotting from the i side out. If it's stainless. It will be fine with the water in it but the packing staying wet will eventually begin to cake with soot and this will quiet down the exhaust as it becomes a heavier medium with build up and offer more baffling. That is about the only result if it's 100% stainless steel inside and out.
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