A water dispensing system for use in a refrigeration appliance comprises a three-way connector operably coupled to an inlet water source and configured to direct incoming water from the inlet water source into an ambient water holding portion and a cold water tank and a water dispenser disposed on a front surface of a refrigeration chamber door. The water dispenser comprises a three-way water control valve configured to dispense water from the ambient water holding portion, the cold water tank, or a combination thereof, an actuator operable between a first position, a second position, and a third position, and a paddle configured to actuate the dispenser.