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Not using a water pan except if you consider a broiling pan i'll put some water or broth into if i'm cooking something like a turkey or butt and i want to catch the drippings.
The lower rack is usually empty but once in a while i'll use a pizza pan i have 3/4 inch holes drilled through it. I'll only use that if i want to even out the temps and or catch a small amount of fat drippings.
I use a large pizza pan with holes in it and a water bowl filled about 1/4-1/2 full of water depending on how long the cook is.
My last smoke I put in one small chip of Apple wood in the water bowl besides what I use in the charcoal basket just to see what would happen. I didn't see any difference.
I soak it in water overnight or at least a few hours before each smoke. (never wash it with soap ) just hose it off and hit with a stainless steel BBQ brush after it has cooled off.
It acts as a drip pan / heat diffuser if I'm not going to use the drippings I will fill it with water and sometimes
herbs out of the garden.
It adds moisture to the drum..........it works out awesome !