bad rear axle seal or wheel cylinder???

Axle seal.

Pop out the ABS sensor to confirm it. Then be prepared to be depressed and a whole lot lighter in the wallet. Most shops will not be able to fix and in a week, it will be leaking again. After 3 attempts, you will be told your axle is bent. When that doesnt work, they will either tell you to buy a new rear end or stop taking your calls.

Or you can read this, print it and show the mechanic before you let them work on it. Hell send them the link to the discussion.

http://www.toyota-4runner.org/3rd-gen-t4rs/114743-possible-solution-leaking-axle-seals.html

By the way Dr Coffee, I used your "method" to do my axle seals and they've been fine for 12,000 miles. Thanks.
 
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Drcoffee knows what hes talking about. I struggled with the shop for a while trying to get them to press the equipment back on to the correct distance. Ended up having to use some bearing separators to push the retainer ring around to get it in the right spot. If this even happens to me again, I am going to spend the money and buy a press from harbor freight and do it myself. The shop was expensive and a pain in the butt, and I had even taken the axle out and took it to them, all they had to do was press the stuff on!
 

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