Disclosed is a masterless control system for controlling a plurality of fluidly and operably connected water heaters to meet a hot water demand such that overall efficiency is maximized and usage disparity between water heaters is minimized. There is further disclosed a method for detecting a small system demand in said network by adjusting the setting of each flow limiting valve of each water heater. There is still further disclosed a method for enabling seamless addition or removal of a heater in service and heating load distribution to water heaters.