A pressure regulated diverting system (10) for water conservation includes a vacuum flow device (12), a diversion line (14), a regulating valve (16), and a containment device (18). The vacuum flow device (12) is inserted in line with the main hot water supply line (20) with a third opening connected to the diversion line (14) which passes through regulating valve (16) and is connected to containment device (18). When regulating valve (16) is open, the cooled hot water slug contained in the hot water supply line (20) fills containment device (18). Once full, the diversion line (14) and the hot water supply lines (20) are pressure equalized and, with the cold water slug, that is normally wasted, removed, hot water is available at the faucet (58) or shower head (60) essentially immediately. A smaller version for use within a shower, in particular, is available and utilizes a manually operable regulating valve (16) to force the first cold slug of cooled hot water into containment device (18). Once full, as can be determined by visual observation, regulating valve (16) is opened and hot water is immediately at shower head (60) while the cold hot water slug is gradually siphoned back into the water flow and used, not wasted.