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Once this happens, hot water is automatically stored in the tank. It's ready for use when the faucet turns on. The tankless POU heater is another type. This heater uses cold water to heat the heating element. POU water heaters will be installed at the source. This means that they can be placed anywhere in your house where hot water is needed. A common application is in your shower. It makes a significant difference if your shower is distant from your central water heater. You won't have the time to wait around for the water heater to heat up every morning if you are in a hurry to get to work.