Help! Another bypass valve question

[witchcraft]

I have a 2005 Wildwood 26' TT. It is new to me. Attached is a picture of the one and only bypass valve I can find.

My question: should it be aligned with the blue line or with the red line? I am trying to get hot water from the heater (that is the back of the water heater in the picture).

I get nothing when I press on the relief valve on the heater so I'm stumped.

Any ideas?

[MtnGuy]

That should be in line with the blue valve for hot water. The way it is set in the photo is the bypass mode.

Is that the only valve, or is there 1 on the lines at the top of the water heater ??

You don't press on the pressure relief valve, you pull it out away from the water heater to check for pressure.

[witchcraft]

Thank you for your help. I'll figure it out sooner or later.

[MtnGuy]

Here is the place to find the answers.