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An HVAC cooling tower is used for disposing or rejecting heat from chillers. Air cooled chillers are less effecient than water cooled chillers due to rejection of heat from tower water near wet-bulb temperatures.
But, mainly a water tower is used to handle excess demand, like in the morning when people wake up and get ready for work (going to the bathroom, showering, brushing their teeth, etc.) all around the same time. At night, when their is almost no water usage, the water tower refills itself from the town's water supply.