Why is my coolant rusty?

After just a few hundred miles on a rebuild, I’ve noticed my coolant is rusty. The level has held good, the car doesn’t seem to run hot. I plan to flush it out and add new coolant, but can anyone tell me what could cause this?

I used Prestone concentrate and added distilled water 1:1 to dilute it to 50%.

71 Scamp, 318, stock 22” radiator with a 16 psi cap, new heater core. Block was hot tanked prior to rebuilding.

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