A support base is provided for a water heater, the support base having a structure for supporting components of the water heater in their proper position in a manner that elevates an outer jacket of the heater and provides space for insulation between the outer jacket and an inner water tank. The support base comprises a lip at one end of the support base, an angled middle portion projecting upwardly from the lip such that the lip and the angled middle portion intersect to form a trough for positioning and supporting the water tank. The support base also has a top portion extending in a generally vertical direction from an upper end of the angled middle portion such that the top portion provides support for the outer jacket.