Oil filter housing issue

[Pimpin Dsmstyle]

92 talon TSI AWD. I haven't had much time to actually figure it out myself, as I think this is a pretty simple problem to fix. However, the problem is as follows.

~ On the internally cooled oil filter housing, there is a *water line* ( I think ) That points away from the housing and towards the motor. It is open and everything is hooked back up. I'm not sure what it does when it runs because I haven't seen it yet. The engine was out of the car for like 2 months so we do not remember what leads to there.

I've only put motors back into 90's so I'm not very used to the differences between to two "models". I know a 90 is externally oil cooled, and I'm pretty sure that line is not there. Which leads me to my next point to why I think it's a water line. 1990 oil filter housings are cooled externally by air / cooler. 91-94 must be internally cooled since the oil has to be cooled down. I would think this line should run to the main water pipe somewhere.

Any information / help would be greatly appreciated. Thank you very much!