A heater pump includes a motor and a pump assembly. The pump assembly includes a pump housing having an inlet and an outlet. An impeller and a heater are disposed within the pump housing. The heater includes a heater housing having an inner wall, an outer wall, a lower wall and an upper wall forming a heating chamber. A heating element is disposed within the heating chamber. The inner wall defines an inlet channel connecting the impeller with the inlet of the water pump. Water flowing through the pump is heated by contact with the heater housing and/or the heating element.