The steering problem won't be connected to the water problem. With regards to the steering, it's probably the belt, possibly low fluid level too.
As Ben ^^ above me said, I'd be more concerned about the water too. Find out if it's a leak first, or if it's burning it. Any steam off the back once warmed up well? (Can be deceiving at this time of year though). Any white deposits around any of the pipes/joints?