Water heater

[gwilkrrs]

Can someone explain this valve in the water heater plumbing and what direction for use?
Feel so dumb.......

[ChuckS]

I’ve added arrows to your pic..yellow arrows shows the direction cold water will flow with that white valve pointed like it is… cold water flows thru bypass line and back to hot water faucets.. (No Hot water)

Red arrow top right shows outlet s8de of water heater,, there is a one way check valve that blocks the cold water from flowing into tank when the valve is positioned as you currently have it..

Turn white valve so that it points toward cold water inlet.. this now allows water heater tank to fill and the hot water exits out the outlet side thru the one way check valve to hot side faucets.