Abstract: A paper towel dispensing apparatus and an assembly for converting a cloth towel dispensing apparatus into a paper towel dispensing apparatus wherein the assembly is of the type employing a wall-mounted cabinet, a roll of toweling carried in a towel bin from which the toweling is withdrawn and directed upwardly between a first drive roller and a pinch roller, about the pinch roller and downwardly, forming a depending loop from which the toweling is directed upwardly between a second drive roller and a take-up roller and is rolled about the take-up roller. As the user dries his hands on the loop of toweling and pulls downwardly on the toweling, a limited amount of clean paper toweling is pulled from the roll and an equal amount is wrapped about the take-up roller.