There are 2 types of gas hot water systems: instantaneous also called continuous, and storage.
Either of these can be heated via natural gas or LPG-bottled gas.
Gas instantaneous hot water systems rely on a heat exchanger to heat the water as it is needed and will never run out of hot water. You will notice a reduction in water pressure, therefore water flow restrictors in taps and shower heads are not recommended. Incorrect pipe sizing, usually found in older homes, can also affect the performance of instantaneous systems.
Gas hot water storage tanks range in capacity from 90 litres up to 170 litres. Storage systems are generally more economical to run, compared to instantaneous systems, depending on the number of people in the household.
For further information click on this link: http://www.livinggreener.gov.au/energy/gas-hot-water-systems
