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Water leak in Turbo 200 1982

My Turbo overheated awhile ago, not sure why, but I have repalced the thermostat and it has not happenned since, BUT, now it seems to loses water and if the level falls below the bottom of the overflow tank, suddenly there is clouds of smoke coming from the exhaust. Smells a bit like something burning. The car has been retrofitted with a water cooled turbo
Fill the tank and the smoke goes away. If water is cut off to the Turbo, does it overheat, and could it leak water into the exhaust or intake.Any ideas?
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744-16v,745-16v,242Turbo.245DLT







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