There is a bug in Ch 1 with the basement pipe to fix it
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I have that bug too, I might have figured it out, so not only does the pipe don't turn off but valves 4 and 3 are in the wrong place it seems, and I made sure to turn the right one but when I leave that room, the valve turns back to on, so it's a bug, jus try to save the game and wait for another update, then try again once that update patch is out.