hot water heater bypass valave on 2014 Thor challenger

When water heater is bypassed you will still get water flow from faucets Hot & Cold side........hot & cold plumbing lines are connected when water heater is bypassed.

Close 1 & 3......Open 2
Then drain water heater and see if water stops flowing......OR pop open the 'pressure relief' valve on W/H....water should flow then stop

I'm not talking about the water filter only the hot water bypass.
The filter was just reference. So your saying close 1 & 3 , open 2 to bypass hot water heater , correct. I know I tried it that way. I believe I may have a faulty valve on #1.

3 valve system


One type of 2 valve system....cold water inlet valve (bottom) is a 2 position valve


Another type of 2 valve system.....hot & cold valves are 2 position valves



Now if you are actually talking about a 'water filter'......then 1 valve is inlet, 1 valve is outlet and the other valve is 'filter bypass' so that cold water can still flow with filter bypassed to replace/clean/repair etc(Close inlet/outlet & Open bypass)

yes you are, assuming you are talking about the water heater/not filter. one should be in a short line connecting input and outgo. that is normally closed. the ones in the incoming and outgoing are normally open. to winterize, open the one in the connection and close the other two so anti freeze does not enter the water heater.
if you are actually talking about a filter don't know how that enters into the water heater, but perhaps it operates similarly so you don't have to remove the filter?
bumpy