An ice/beverage dispenser is characterized by an ice/beverage dispensing machine having an integral ice making capacity. An icemaker of the dispenser and the ice and beverage dispensing portion share an evaporator that that is utilized both for chilling beverage water for dispensing and for making ice. The evaporator is efficiently utilized in that one side of it is used for making ice and both sides of it are used for chilling water. The present invention uses a processor based control circuit that operates the refrigeration system between ice-making and water chilling modes in such manner as to ensure that cold beverages will always be served. The ice/beverage dispenser also includes a system for quickly combining and separating the ice making and beverage dispensing water supply, water drain and electrical functions.