I am considering modifying Mischief’s engine cover to add a hinged panel to hold the garbage can - as was done on some factory finished boats. I’d like to hear from other boats that have this arrangement - whether it works well or not. I imagine heating garbage might be suboptimal when doing some extended motoring, but there’s an obvious workaround 
. Mischief was repowered with à Yanmar 3YM30, so this is the hot side of the engine, with alternator and heat exchanger.
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I’ve this setup. The garbage can get warm with my Yanmar 27hp, but never so much that I worry about combustion. My main worry has been that some garbage will escape and foul one of the engine belts! I’d say it’s a good setup as long as you’re thoughtful about overfilling and about flammable refuse. Not the place for your oil soaked rags 
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Ours is that way from the factory. For us it works well. No issue with heat that we’ve noticed.
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Likewise Itchen. I may have a photo somewhere but it was factory installation. It was set up to hold a small kitchen garbage bag secured with bungee cord.
I pasted the USCG required no garbage overboard placard to the backside. Mostly worked just fine, but ‘accidents happen’. You definitely want to make sure there’s no unblocked path to the bilge.
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