A hybrid apparatus for cooling water and air while heating water and storing heated water includes a refrigeration system, a first water tank, a water inlet and heat transfer unit for transferring heat from the refrigeration system into a portion of the water from the water inlet. The apparatus also has a conduit for delivering heated water to a first insulated water tank and to a tap for drawing off heated water. In addition, the cooler has a water cooling system and a conduit for cooling a portion of the water from the water inlet and delivering the cooled water to a second water tank. A conduit is also provided for drawing water from the second water tank to a tap of cold water. Further, the cooler includes an air cooler that has a coil and a water pump for pumping cooled water through the coil plus a fan for blowing air across the coil to thereby cool the air.