I’m building the tender for a Don Young Class 2 at the moment and have used brass sheet for the tank,but I can’t see any reason not to have made it in steel.It certainly would have been a lot cheaper!
A member of the club to which I belong,recently completed a Class 2,with a steel tender tank.After every running session he dries out the inside of the tank with a hair drier (I’m not sure his missus approves or even knows!) He reports no problems with rusting.
I did read somewhere of a model engineer who coated the inside of his tender tank with a resin compound used for the restoration of old and rusty petrol tanks of vintage cars and motor bikes.