Abstract: The invention relates to a water heater comprising a cold water inlet, a hot water outlet, a fluid pathway arranged between the cold water inlet and the hot water outlet, one or more heating elements that heat water in the fluid pathway, a power electronics unit coupled to the one or more heating elements, a controller configured to regulate a temperature of the water in the fluid pathway to an adjustable hot water temperature by controlling the power electronics unit, a flow sensor to detect a water flow through the fluid pathway, and an inlet water temperature sensor adapted to determine an inlet temperature of the water.