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Message: [QUOTE="KnightBridgeAZ, post: 2270415, member: 591"] I suspect that sort of thing might be fine. Certainly would be environmentally friendly, I suspect - the amount of water we waste here to get hot or cold water from the faucet is amazing (in AZ the "cold" water often isn't particularly cool unless you let it run, my hot water issues are just those you expect with a single story home of moderate size and a traditional water heater in the garage supplying all the hot water). The same set-up in NJ used less water, as the water heater was in the basement below the kitchen and guest bathroom - much shorter run. In NJ we eventually went with a directly vented unit that supplied both heat and hot water and saw quite a savings on the natural gas bill. That said, I couldn't make a final "verdict" as we had some ongoing issues with our particular unit (solved just as we were moving) and only had it about a year before we moved. [/QUOTE]