A liquid dispensing system is disclosed in which a reservoir assembly is provided for receiving a liquid flow from a liquid supply. A liquid level sensor is provided for initiating the liquid flow until a predetermined liquid level is established in the reservoir assembly. A liquid flow sensor indicates a flow condition from the liquid supply to the reservoir assembly. A dispensing member such as a faucet is provided for dispensing liquid from the reservoir. The reservoir assembly of the present liquid dispensing system includes an overflow protector assembly for preventing an overflow condition of liquid from the reservoir assembly.