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Thank you for your inquiry! The small hole underneath the drawer at the bottom of your Insignia™ 7 Cu. Ft. Garage Ready Upright Convertible Freezer is indeed a drain hole for condensation and defrosting. When the freezer defrosts, the water drains through this hole and typically collects in a drip tray located underneath the unit. This tray helps to evaporate the water over time. To clean the area where the water collects, you should first locate the drip tray, which is usually accessible from the back or bottom of the unit. Carefully slide out the tray, being cautious as it might contain water. Empty any water and clean the tray with warm, soapy water. Rinse and dry it thoroughly before placing it back. Regular cleaning of the drip tray helps maintain the efficiency of your freezer and prevents any unpleasant odors. Keith | Insignia Support https://www.bestbuy.com/site/insignia-7-cu-ft-garage-ready-upright-convertible-freezer-with-energy-star-certification-white/6547489.p?skuId=6547489
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