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Maximization utilization of an air conditioning unit is vital for the present energy crisis situation. The objectives of this research are to design and fabricate a portable air conditioning-heat pump unit for produce cool air and warm water. In other words, this unit can provide warm-water as a by product of air-conditioning. It is appropriate for the household section, and some type of commercial buildings and some type of public buildings that need to use conditioning air and warm water at the same time or use as pre-heater for water. The unit is designed on wheels to ease mobility, in small size. It may be used as stand alone unit or as a supplement unit to other air conditioning systems. According to cooling system performance evaluation of the unit in term of the coefficient of performance (COP) and the economic analysis, the results show that the experimental unit when heat up the water by approximately 10-16degC at water flow rate of 2.0 l/min will give maximum COP. Waste heat recovery from the system at the flow rate of 2.0 l/min can reduce water-heating energy consumption by approximately 4,000 kWh per year. Furthermore, COP improving by using water cooled condenser of the air conditioning unit can help to reduce the energy consumption by 1,480 kWh per year. And the unit is economically attractive also with modification unit that has payback period of 6 months.