A compact, energy efficient, continuous-flow point of use distillation system utilizes stacked, vertically-arranged components to provide a compact and energy efficient distillation process and a device which is quick and easy to service and maintain. A housing contains a double-walled boiler vessel to which water is supplied from an external source through suitable filters. A heating source is provided to boil water in the vessel, producing steam which is supplied through a condenser to a storage container located below the boiler. A noninvasive liquid level sensor maintains the water level in the boiler and the controller is provided to activate the boiler when water is required for the storage reservoir.