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An electric water heater and automatic faucet unit for public bathrooms with an environmentally friendly design that saves space, time and energy. The energy-efficient system heats only the amount of water needed, when needed to the temperature needed. Instant heating technology combined with water-saving technology cuts power and water usage by more than 90% compared to conventional systems – yet the temperature and water flow feel "just right" to users. The system is hassle-free to install as the shut-off valve requires no plumbing to connect and compact as it has no hot water tank.