In a heat conducting assembly for a water heater and a method for making the heat conducting assembly, there is provided a heat-conductive housing which has inner wall surfaces that cooperate to confine a sealed chamber. A heat-conductive unit is disposed in the sealed chamber. Heat-conductive particles are disposed in the sealed chamber, and are caused to accumulate on the inner wall surfaces of the heat-conductive housing and outer wall surfaces of the heat-conductive unit for heating water in the heat-conductive unit.