Spigot leaking at handle
If there's a screw, it's meant to come off. The reason the leak doesn't occur when the spigot is off is because the gasket/ring that's suppose to keep water from coming out of the spigot is working properly. Hence, this ring isn't your problem.
Shut the water off in the house. Remove the screw and then the ring/washer. Take it w/you to the store and buy a replacement. WHILE you're at it, you might want to consider replacing the washer inside the spigot too since it might be going too. As you said, if you have to 'crank down' on the spigot to shut it off, then the washer in there is on its way out. You may need a monkey wrench along w/an adjustable wrench to remove the 'large' nut.
Remember, ONLY turn the shut-off down enough to stop the water from coming out. The washer usually wear out from over-compression (unless you have well water which is a whole nother story ...)
My best to ya and hope this helps.
Jay J -Moderator
At that time Jay J said, "Remember, ONLY turn the shut-off down enough to stop the water from coming out. The washer usually wear out from over-compression (unless you have well water which is a whole nother story ...)"
Well, I DO have well water and my outdoor spigot is leaking and I'm really curious what that "whole nother story" is ...
If anyone knows why my outdoor spigot running well water seems to fail - like, every other freeekin' year - please explain it to me?!