Originally Posted by 
TonyC
				 
			The breather is in the top of the housing on the passenger (long) side of the diff.
It should have a hose on it that heads up into the engine bay, make sure this is higher than the deepest water you play in, the rear breather is often lower than the front one.
Check the hose is not blocked or broken, the fitting in the axle housing can get blocked as well, it can be unscrewed to clean it out, there is a washer on each side of the banjo fitting, don't lose them.
The attached pic is a Disco, but my 95 Defender is the same.
Tony