Abstract: The present invention is an apparatus for controlling a water delivery system utilizing an instant flow tankless water heater. It includes a programmable microprocessor with support circuitry to achieve control of the outlet temperature of a varying flow rate and varying inlet temperature stream. The system senses a water outlet temperature and controls AC power through an on/off mechanism to regulate power to heating elements embedded in the water stream. The capabilities of the heating elements are improved through the application of using a microprocessor to perform a proportional (P), integrating (I) and derivative (D) calculation. The calculations are used to determine the operating characteristics of the heating system and to control the heating system.