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The Correct Fluid for this Reservoir is ATF (archive)
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Posted by Thomas Meacham on January 22, 2001 at 09:12:43:

In Reply to: Problems Bleeding Breaks After Pad Change 88-735i posted by Tighe Werntz on January 21, 2001 at 14:52:42:

The only time the Petosin is used is when the vehical is equiped with automatic level control. As for the leakage, apparently this reservoir was overfilled before which doesn't become apparent until the system is pumped down. 10 to 20 brake pedal pumps puts all of the fluid from the accumulator back to the reservoir. So, I wouldn't add any fluid to the Booster ATF Reservior, it's still a little too full. All that I would do is to follow the correct order for bleeding the brakes. Clean up the mess, and go out and enjoy the new brakes.

Tom 1988 735i 98,902 miles

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