A water heater including a water inlet line having an inlet opening that introduces cold water to a tank, a water outlet line having an outlet opening that withdraws heated water from the tank, and a heating element. The water heater further includes a control circuit. The heating element can be an electrical resistance heating element, a gas heating element, or a combination thereof. In one construction, the gas heating element includes a first combustive section and a second combustive section separately controlled from the first combustive section.