A combination closed-circuit washer and drier apparatus (11) having a washing cycle and a drying cycle. The apparatus comprises a unitary housing having a tub (37) and a tumbler (39) within the tub, the tub also having an air inlet (27) and air outlet (29) which allows air to flow through the tub, wherein air flowing from the air inlet is in communication with the tumbler. The apparatus also includes a desiccant recharging system (13) located within the unitary housing having a entrance (15c) and an exit (65), the entrance coupled to the tub air outlet and the exit coupled to the tub air inlet, thus allowing a continuous flow of air through the system. The desiccant recharging system also includes a diverting valve (17) that directs the flow of air primarily through the desiccant system in a closed-loop during the wash cycle. The diverting valve alters the air flow between the washing cycle, for desiccant regeneration, to the drying cycle, for desiccant water adsorption.