An on-demand and efficient ice delivery unit is described. In an aspect, the unit is comprises a cabinet that further comprises an ice storage bin and an icemaker. The ice delivery unit provides a user with compressed chewable nuggets of ice. In an aspect, the unit comprises an icemaker that is ideally located below the ice storage bin. The location of the icemaker, which may also be remote, is designed to enable the ice storage bin to be of a larger capacity than ice delivery units currently known in the art. Additionally, the location of the icemaker reduces the overall size, particularly the height, of the unit in comparison to other ice distribution units known in the art.