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I doubt it's the wire itself, although that is possible since it's only 12 guage wire. It could be the water heater.....(I assume it's electric). More than likely the water heater is somewhat old and has sediment in the bottom. This inhibits the heating element from heating the water properly and usually just causes the water heater to run alot. But sometimes it can cause a circuit breaker to trip. For a double 30 breaker you should however be running 10 guage wire at a min.
Hth's
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