A water heater includes a water tank and a flow-through heating element. The water tank contains heated water. The flow-through heating element is located in the lower portion of the water tank and heats water as water is passed through an interior channel of the heating element. In another configuration, the water heater further includes a recirculation line and the heating element further includes an input end external of the water tank to receive water to be heated and an output end to output heated water into the water tank. The recirculation line transports water from the water tank to the input end of the heating element that is external of the water tank.