An electric water heater and automatic faucet unit for public bathrooms. This system has a new environmentally-friendly design that saves space, time, and energy by heating only the amount of water needed, when needed, to the temperature needed. Instant heating technology combined with water-saving technology cuts power and water usage by more than 90% compared to conventional systemsyet the temperature and water flow feel “just right” to users (temperature that is not too hot or cold, and water flow adequate for washing with no splashing). The system saves labor during installation thanks to a built-in shut-off valve, reduces maintenance with automatic temperature control, and saves space with a tankless system requiring no heating. The automatically heated faucet provides a new approach which does not stress people or the environment.