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If you see water forming around your toilet, you probably have a damaged wax toilet ring. This should be promptly replaced. The wax ring creates a seal between your toilet and the sewer pipe that sticks up through the floor (also known as a toilet flange). The wax ring is fairly easy to replace and will save you the nightmare of having to replace soggy subflooring down the road. Don't caulk around the toilet, it prevents you from knowing when the seal is leaking.