I have a question about making a waterer out of a 5 gallon bucket with nipples on the bottom. If you put the lid on will the nipples still work? You know, pressure and all.

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I use 2 chains spread wider than my bucket that way it doesn't deform the bucket and lid screws on. I remove lid ad fill with another bucket.I have four nipples in the bottom of a 5 gal. bucket. I hang it from the rafters on a chain. I drop a gallon block of ice in it each morning. Come winter, I probably put a gallon of hot tap water in. It seems to work pretty well.
Like the others have said, the handle on a bucket probably can't hold 5 gals of water for long. Honestly with 2 1/2 - 3 gal. it's getting a little dicey. With about a gallon, it deforms the bucket enough that it's hard to get the lid on and off. I'm not sure how just yet, but I'm going to work something up to support it better. It's good quick fix though.
P.S... I was thinking about replacing the handle as well. I was thinking about bending some rebar to making a really oversized handle and using a piece of angle iron as a brace to keep the bucket from deforming.