A system and method for vacuum distillation and desalination contains integrated vacuum generation. Latent heat and a vacuum produced with steam condensation are used for distillation and desalination of liquid. The distillation and desalination system could comprise a spray evaporator and a condenser for receiving a feed stream for distillation or desalination. Produced are water flow condensate and concentrated liquid flow. A vacuum pump is actuated with condensation-induced dual-action piston-cylinder vacuum generation technology. The vacuum generator is configured to transfer latent heat from condensing steam vapor in its cylinder to the feed stream. Steam is also configured to transfer latent heat directly to the feed stream circulated through evaporators and condensers. A distillation and desalination method with active vacuuming and self-distillation in staggered multi-stage arrangement provides for efficient energy recovery. Use of multi-stage arrangement maximizes thermal energy usage for increased distillation capacity and applicability.