Important requirements you should know about your new water heater:

• Location—Prohibited in Bedrooms, bathrooms, or closets (with some exceptions)

• Full bore water shut-off valve on the cold water side must be installed

• A watertight drip pan is required if the water heater is over a framed area.
  a. Drip pan requires a minimum ¾ inch drain line that discharges to an approved location
  b. Drip pan must be 2 inches in diameter larger than the water heater
  c. Drip pan height must be a minimum of 2 inches high

• Access to the front of the water heater must be a minimum of 30 inches of clear space

• Protection from vehicles required by bollards or location.

• Flame or spark must be a minimum of 18 inches above the floor.

• Water heaters must be supported on the ground by 3-inch thick concrete pad above grade

• Earthquake straps are required.

• Straps must wrapped all the way around the water heater.

• Must be able to inspect and remove the water heater.

• A combination Temperature Pressure Relief (TNP) valve is required.

• A TNP discharge drain line must be installed.

• TNP Drainline may not slope upwards, drain to drip pans or discharge to crawlspaces.

• Flexible connectors cannot be used as TNP drain lines.

• Vent connectors must be mechanically secured by screws to the water heater (metal tape is not accepted)

• Enclosures are required for exterior installations unless the water heater is listed for Exterior use.

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Lastly regulations keep changing always check your local code enforcement for the latest requirements.