EZ,
Here is how I do it. Don't know if it is the "correct" way of doing it, but it works for me.
I have a large tub set up full of water. I plug all the holes and holes up except one small one on the bottom of the tank. I attach a small vaccum line to this hole (usually where the gas hose goes to the other tank side).
I put my adjustably air blower inside the other end of the hose. Now I slowly open the blower so it is letting air in the tank (not much at all though). Then I lower the tank in the water looking for any bubbles coming from any of the seams. Be sure and check them out thoroughly. Then I pull the tank back out and immediately dry it (especially bare metal tanks.)
If you keep the air going through it before you dunk it in the water, no water gets inside the tank.