A tankless water heater includes a scale control module (SCM). The SCM is mounted inside or outside of a cabinet which encloses a heat exchanger and source of heat of the water heater. The SCM may include a connector and a cartridge removably attaching to the connector or may only include a cartridge permanently affixed to the tankless water heater. The tankless water heater includes a continuous water pathway inside the cabinet to supply water to all components of the tankless water heater, including the SCM. The tankless water heater receives supply water at its inlet, treats the supply water in the SCM to generate treated water having reduced scale-forming characteristics compared to the supply water, and heats the treated water in the heat exchanger to generate heated treated water.