A fuel tank for use with small internal combustion engines, the fuel tank having an inlet and an outlet and storing a quantity of fuel therein. A hydrophobic barrier is positioned within the fuel tank in flow communication with the outlet, and permits the passage of fuel therethrough while preventing the passage of water therethrough. In this manner, water is prevented from entering the intake system of the engine. The hydrophobic barrier may be positioned at an inclined angle proximate the fuel outlet, such that water droplets within the fuel are deflected downwardly toward the lower portion of the fuel tank. The fuel tank includes a lower wall with a depressed area defining a water trap in which water may collect, the water trap spaced laterally away from the fuel outlet and the fuel inlet.