Abstract: An apparatus and method for providing a hot water supply for a building such as a mobile home, house, or business. A hot water storage tank is positioned within the building. A gas-fueled burner is positioned outside the building adjacent a heat exchanger which is connected in fluid communication with the indoor water storage tank. A pump circulates water from the tank through the heat exchanger and back into the tank responsive to a thermostat in the tank. The heat exchanger includes a thermostat for sensing the temperature of water therein to activate the pump and circulate relatively warm water from the tank through the heat exchanger to prevent freezing of water within the heat exchanger, such as during winter months when the ambient temperature falls below freezing. The gas heater may be used to convert a conventional electric water heater to operate from gas which is combusted outside of the building.