Water can get in if it's stored outside, and it will emulsify in the oil. You can get some of it out, but the majority will be held in suspension.
If it's antifreeze, is there a hydraulic oil cooler? It could be leaking, same thing, the antifreeze will mix with the oil and be held in suspension.
Once you find the source, drain it best you can, leave it draining over night. Then do a partial fill, cheap stuff will do, run through all the motions, drain it again. If there is a filter, change it, then fill it with the good oil. It may still be a little milky, but will clear up as the water boils off.
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Today's Featured Article - The David Brown Rose Badge - by Samuel Kennedy. In the 13th century civil war was raging in England. Two English noblemen were involved in a conflict which became known as the War of the Roses. The Duke of York had as his emblem a white rose and the Earl of Lancaster had a red rose. Today the white rose is the official emblem of the county of Yorkshire and the red rose has been adopted by the neighboring county of Lancashire.
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