Abstract: A direct contact water heater comprises a cylindrical column having a plurality of heat exchange bodies disposed in the upper portion thereof, a spray nozzle disposed above the heat exchange bodies for discharging water thereon and a combustion chamber extending into the lower end of the column. A cooling jacket is mounted in surrounding relation to the combustion chamber and extends downwardly along the sides and around the bottom thereof. The cooling jacket is open at its upper end for receiving a portion of the water falling from the heat exchange bodies and has a discharge opening formed adjacent its upper periphery for discharging a portion of the collected water into a water tank below the column to effect circulation of the cooling water through the jacket.