Sounds like you have a bad thermostat. You can change the thermostat, but if the heater is more than 8 or 10 years old you might be better off to replace the entire heater. Thermostat replacement is easy:
1 turn off the gas 2 drain the heater 3 unscrew pilot, main burner, and thermocouple lines from bottom of thermostat. 4 unhook gas line from thermostat. 5 unscrew thermostat from heater tank. Use pipe sealer when you install new thermostat, and gas line fittings. burner and thermocouple lines seal on a taper seat and do not need sealer. after reassembly check for leaks with soapy water, not a match, light the pilot and turn up the temp. The heater may sweat quite a bit while it is heating up the first time, this is due to the cold water on the inside and the fire on the outside. some water may drip in the bottom of the heater and you might think you have a leak, but let it heat up completly, if the water is still dripping after the tank is hot then you need to find the leak.
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