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Engine/Transmission (1994 - 1998) Lack of Power/Water in fuel light on

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I'm looking to buy a 1998 2500 from my daughters horse trainer, the truck seems in good shape except the truck starts and has no power. 135k and the water in fuel light is on. I tried to drain the filter but light is still on. Would this cause the lack of power? Oh and they want $6500. 00, that seems a bit high for a truck that isn't running well.
 
When you drained the filter did you capture the fuel in a clear container to see if there was actually water? I would say a lot of water in the fuel could cause a lack of power. Water doesn't combust well;)
 
Try to find out when they last changed the fuel filter. Old filter and clogged pre-filter screen is good for lack of power.

Floyd
 
Thanks for the response, my pc crashed and had to restage it. The seller will not come down in price, so I went home and change the fuel filter in my 03. Thanks guys
 
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