Abstract: A water cooler and dispensing system comprises a housing, a pump, a cap, a siphon tube, a reservoir, a cooling unit, control circuitry and a faucet. The housing includes a frame and detachable panels for supporting the reservoir above a water bottle. The cap substantially seals the bottle and is coupled to the pump. The pump forces air into the bottle and water upward through the siphon tube to the reservoir. A liquid pumping system may also be used. The reservoir is divided into two portions, and the lower portion contains a cooling unit for chilling the water. The reservoir has an output port from each portion of the reservoir coupled to a faucet formed by a manifold, two valves and a nozzle. The dispenser also includes control circuitry for selectively operating the pump to maintain a predetermined water level in the reservoir. The controller also lights an indicator when the bottle is empty.