Full of, resembling, or relating to bilge water; foul-smelling, filthy, or disgusting.
Adjective form of 'bilge' (from Middle Dutch 'bulge'), created by adding the common English adjective suffix '-y'. The meaning directly transfers from the noun describing the foul water to the adjective describing things with those qualities.
The word 'bilgy' captures something important about how English speakers take concrete nouns and turn them into descriptive adjectives—if something smells like bilgewater, it's 'bilgy,' just like something that tastes like metal is 'metallic'!
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