Abstract: The dispenser of the present invention is operative to dispense both uncarbonated and carbonated drinking water. It consists of a reservoir for retaining uncarbonated drinking water and a first heat exchange associated with the reservoir and supplied with a fluid refrigerant, for maintaining the water at an optimum drinking temperature. The reservoir has a direct connection to a dispensing faucet for dispensing uncarbonated water. In conjunction with this, the unit makes use of a carbonator for dispersing carbon dioxide in water, and a second heat exchanger located within the reservoir in contact with the uncarbonated water. A pump is arranged to take drinking water from the reservoir and delivers it to the carbonator the carbonated water is supplied to the inlet of the second heat exchanger. A second faucet is connected to the outlet of the second heat exchanger to dispense the carbonated water.