The holes in front are for tipping it up and draining it. I agree: pin holes, condensation, and even leaks around the seals for the peddle/paddle shafts can do it. I routinely tip ours (2 Paddle boats/ different brands) up every so often and dump quite a bit of water out, even though there are no 'apparent' leaks that I can see. It is just another Honey-Do for the Pond Meister. (-: