Combination beverage and water dispenser

A combination beverage and water dispenser includes a housing having a liquid-beverage-concentrate storage reservoir, a hot water storage tank and a cold water storage tank received therein. The cold water storage tank is in fluid communication with both a domestic water supply line and a dispensing cavity for receiving an inverted water bottle. Level sensors within the cold water storage tank communicate with a control valve on the domestic water supply line to control incoming domestic water supply. Alternatively, the domestic water supply may be disabled and a water bottle may be installed within the cavity to use bottled water in lieu of domestic water, if desired. The hot water tank, the cold water tank and the beverage concentrate reservoir are in selective communication with a mixing valve wherein hot or cold water and beverage concentrate are mixed to produce a desired hot or cold beverage. Accordingly, a user can instantly dispense a desired amount of beverage using either domestic water or bottled water.