Abstract: A laundry dryer source of heat for providing warm gas to dry laundry is utilized to heat water for laundry washers use, and is particularly suited for coin operated laundries. In the illustrated embodiment each dryer has a gas burner and a water coil is in the flame area of the burner, the coils being connected in circuit between a cool water outlet and a heated water inlet of a typical automatic water heater tank. A pump circulates cool water from the tank through coils and returns heated water from the coils to the tank whenever any of the dryers are in operation. Since most laundry is promptly placed in a dryer after washing, during high or low capacity operation of the laundry, the quantity of heated water is automatically regulated by dryer operation to the overall demand for hot water by the washers, the automatic water heater tank providing heated water during sudden surges in washer operation before the dryers are in operation sufficiently to supply the hot water.