<a href=showthread.php?s=&postid=7546397#post7546397 target=_blank>Originally posted</a> by RichConley
When the gasket is on the same side as the nut, it can't seal. The water will just flow out through the external threads.
I like the flange to be on the inside of the tank, but i suppose you could do either way.
Rich is 100% correct. The gasket always goes on the flange side.