A propulsion system for an aircraft includes a core engine that generates a core gas flow, a propulsor section that is driven by the core engine and disposed aft of the core engine, a nacelle that surrounds the core engine and the propulsor section, a water recovery system that is disposed in the nacelle, an exhaust duct where the core gas flow is directed radially outward from the core engine to the nacelle, an evaporator assembly that is in thermal communication with the exhaust duct where water is recovered by the water recovery system and is heated to generate a steam flow that is subsequently communicated to the core engine.