To develop a system operable to condense water from outdoor atmospheric air in both of a cooling mode and a water generating mode in an energy and equipment efficient manner.

An air conditioning and potable water generating system 10 in which a cooling element condenses water from atmospheric air is operable in two switches of: an air conditioning mode, in which cooled atmospheric air from which water has been extracted is supplied to an interior environment of a building 12; and a water generating mode, in which communication of the supply air into the building interior is closed off. The system is operable to collect water regardless of whether cooling of the building interior is required at a particular point in time. By using the same cooling element in each mode and by providing and using return air from the building 12, incoming external air is mixed therein to cool a heat dissipating element of the cooling system, resulting in an efficient operation. The system can be controlled to operate to change a mixing ratio of the fresh atmospheric air and circulating return air.