70 hp 2 stroke, low compression/water in compression chamber

Looking for some advice on what route to take with my 2001 Yamaha 2 stroke (70 hp). I have gone through the entire fuel system thinking that was the problem. Same problem persists, stalling under load /no idle. Then I cleaned my carbs out, problem continues. I just decided to run a compression check and after pulling the plugs, it appeared they had water on them (cylinder 2 and 3). Compression in cylinder 1= 100 2=60-70 (bouncing around/not holding pressure) 3= 110.



Wondering what direction I should go in now. Pull the head and install a new head gasket (maybe the water is coming n due to bad gasket). Could the compression being low and water being present mean the gasket is bad?


What can or should I do to test this? Really hope I'm not looking at a total rebuild...

Pull the cylider head off.

Ill pull the head and post a picture.

And just like that, this just turned into a rebuild thread.



Outer head cover removed





Gasket




Head removed



Head



And this is root of the problem, this is a close up of cylinder 2 (low compression cylinder). Salt water has eaten all the way through the head. Joy.



Here you can see the major scoring in the cylinder walls.