A water supply system has its housing and pressure tank sized so that the pressure tank fits within the housing, thus avoiding the need for another separate opening in the ground for the pressure tank. With this arrangement, there is less work in installation of the system and in maintaining the system. A control box for the system can be in the housing near the top where it is accessible or it can be separate. Preferably, the pump will be driven by a variable speed pump or a stop cycle valve will be used. Preferably, the pressure tank has a capacity of less than 40 gallons and the housing has an enlarged portion and a reduced portion with the pressure tank being mounted within said enlarged portion of said housing. The enlarged portion of the housing has an enlarged portion bottom surface and the reduced portion of said housing has a reduced portion bottom surface with the reduced portion of said housing being integrally formed with said enlarged portion bottom surface and extending downwardly therefrom and the conduit is adapted to be connected to a pumping system within a well casing and extends through the reduced portion bottom surface for supplying water to the pressure tank.