This electric water heater was in a closet in the garage adjacent to the electrical panel. It appears due to the close proximity of the disconnect at the service panel, no local disconnect has been utilized.
My doubts are regarding whether or not it is appropriate to run conduit through a wall like this, and if it matters depending on the type of conduit used.
Is there a lock-out on the water heater breaker?
Nope, but the breaker is about 3 ft to the right with direct line of sight though.
Looks like LFNC which is permitted to be concealed in walls. A disconnecting means is required unless the branch circuit breaker is within sight and 50’ or less from the HWH. A breaker lockout device would also be permitted in lieu of the disconnecting means.
Thanks, Robert. 
Thank you! Electrical always seems to be the portion of my inspections that I frequently find I need to research a bit more for clarity.
Helps some to know what these acronyms mean sometimes. 
Can you offer some examples of conduit not permitted to run through walls? Now that I understand LFNC, I’d like to cover all my bases in case I see another example.
I encounter wiring passing through walls of the home occasionally and would love to have a solid reference for my understanding of what is/isn’t permitted.
Good question, I cannot think of one off the top of my head. There are some like surface metal raceways ( Wiremold) and metallic and non-metallic wireways that prohibit a coupling within the wall. For those type of raceways only unbroken sections can be in the wall.
LFMC embedded in concrete. LFNC-B?
230.3 Pass Through a Building or Structure
Service conductors cannot pass through the interior of another building or other structure.
230.6 Conductors Considered Outside a Building. Conductors are considered outside a building when they are installed:
(1) Under not less than 2 in. of concrete beneath a building or structure.
(2) Within a building or structure in a raceway that is encased in no less than 2 in. thick of concrete or brick.
(3) Installed in a vault that meets the construction requirements of Article 450, Part III.
(4) In conduit under not less than 18 in. of earth beneath a building or structure.
Equipment Disconnect required within >< 9’ of service equipment, 50 feet visual.
Thoughts?
Robert, that applies to the unfused service conductors only. Once they have overcurrent protection there is no limit on length.
Like Robert M, I cannot think of a conduit that cannot penetrate a wall.
Are those black iron pipe fittings they used on the cold inlets to the water heater and expansion tank?
After a closer look: they might be brass. But there appears to be a leak in progress anyway. Never a dull moment.
