A combined refrigerator-water heating system providing one or more insulated food storage compartments, includes an insulated water storage compartment, a refrigeration system including a compressor, an evaporation heat exchanger configured to cool the food storage compartment(s), a condenser configured to heat the water storage compartment, a flow restriction/expansion device, piping connecting the compressor, condenser, expansion device and evaporation in a series flow loop, a resistance electric heating element configured to heat the water storage compartment, and a control means to activate the compressor in response to cooling demand from the food storage compartment, and to activate the electric heating element in response to either heating demand from the water storage compartment or a time-of-day signal to bias resistance electric water heating operation toward times of off-peak electric use.