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It has a compressor (like a refrig or air conditioner) which compresses a gas (freon) creating hot gas, This gas heats the hot water tank as it condenses to a liquid, The liquid then goes to the evaporator, where it boils back to a gas again, taking heat energy out of the cold water tank and cooling the water before returning to the compressor to start again. The hot water tank may have another heat source to boost the temperature higher.

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Riley Wolf

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Q: How does a cold water dispenser work?
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