Small Engines (Lawn Mowers, etc.): Honda GC 190 motor, husky pressure washer, compression stroke

Question
I was given a Husky Pressure Washer Black Max, it has a Honda GC190 OHC motor.
It has no compression, the pull start pulls very easy.
I pulled the plug and place my thumb over the hole and felt no compression. I removed the valve cover and pulled the recoil, the valves moved and the timing belt did turn. It was given to me when it just quit working while it was being used. Also the oil has water in it. What do you think may be the problem with the compression?

Answer
Scott
Sounds like the engine seal may have blown causing water from the pump go into the engine. The other thing you can do is drain the oil/water from the engine and put a compression tester in the spark plug you would have to make sure that the piston is on the compression stroke"TDC" and then check to see where it is leaking. Other than that you will have to pull the engine and take apart the engine & the pump to see where he leak is.