Since ethanol will start to separate at about 3% water contamination you must be getting water in the fuel from somewhere. Since alcohol works to keep water in suspension in the gasoline I would think that removing the alcohol would only make the water problems worse rather than better.
I'm guessing that the problems with water in the ethanol in parts of the country have more to do with how the fuel is handled rather than the fuel itself. Alcohol has to be added to the gasoline just prior to retail delivery. If ethanol is shipped by pipeline it will be contaminated with water.
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Today's Featured Article - New Life for an Old Allis - by Tyler Woods. My friend Jon, has an old '39 Allis Chalmers B. He thought it a marginal tractor that had long since served its time. She smoked terribly and never had much power but he couldn't afford another so he was limping along with what he had. Jon's Allis has a small front loader and though it doesn't carry much, it serves his needs. It was the hard starting and low power that made him think it was time to replace the old girl. Jon called me to help him discover why his tractor wouldn't start
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