Some water-cooled air compressors use domestic cold water to cool the air between compression stages, and sometimes after the final compression stage. In urban areas, using cold municipal water for cooling purposes in an open loop (in which water passes through only once) is costly and wasteful.

This type of cooling is common in many systems because it is simple to set up and cold water is readily available. However, installing a closed-loop fan-coil system can nearly eliminate domestic water usage during winter and shoulder seasons.

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