Abstract: A diverter apparatus and method of saving fresh water from being wasted while one waits for the cold or lukewarm water that accumulates in a hot-water pipeline to pass therethrough before the usable hot water begins discharging from a shower fixture or from a faucet fixture. The apparatus comprises a two-way diverter valve having an inlet port and two outlet ports. The inlet port is attached to the shower or faucet discharge fixture whereby the fresh water can be diverted to one of the outlet ports which is connected to one end of a hose. The hose is interconnected between the diverter valve and a storage container so that the initial cold water passes through the hose for storage in the container until hot water is discharged whereby the cold water is prevented from being wasted down a drain. The other outlet port of the diverter valve is adapted to receive a shower-head fixture or a faucet-aerator fixture.