diff --git a/homeassistant/components/airzone_cloud/__init__.py b/homeassistant/components/airzone_cloud/__init__.py
index 83be481a4de..c6908b191d7 100644
--- a/homeassistant/components/airzone_cloud/__init__.py
+++ b/homeassistant/components/airzone_cloud/__init__.py
@@ -17,6 +17,7 @@ PLATFORMS: list[Platform] = [
     Platform.BINARY_SENSOR,
     Platform.CLIMATE,
     Platform.SENSOR,
+    Platform.WATER_HEATER,
 ]
 
 
diff --git a/homeassistant/components/airzone_cloud/entity.py b/homeassistant/components/airzone_cloud/entity.py
index f53321ce353..8e8a7aff1bc 100644
--- a/homeassistant/components/airzone_cloud/entity.py
+++ b/homeassistant/components/airzone_cloud/entity.py
@@ -11,6 +11,7 @@ from aioairzone_cloud.const import (
     AZD_AVAILABLE,
     AZD_FIRMWARE,
     AZD_GROUPS,
+    AZD_HOT_WATERS,
     AZD_INSTALLATIONS,
     AZD_NAME,
     AZD_SYSTEM_ID,
@@ -136,6 +137,47 @@ class AirzoneGroupEntity(AirzoneEntity):
         self.coordinator.async_set_updated_data(self.coordinator.airzone.data())
 
 
+class AirzoneHotWaterEntity(AirzoneEntity):
+    """Define an Airzone Cloud Hot Water entity."""
+
+    def __init__(
+        self,
+        coordinator: AirzoneUpdateCoordinator,
+        dhw_id: str,
+        dhw_data: dict[str, Any],
+    ) -> None:
+        """Initialize."""
+        super().__init__(coordinator)
+
+        self.dhw_id = dhw_id
+
+        self._attr_device_info = DeviceInfo(
+            identifiers={(DOMAIN, dhw_id)},
+            manufacturer=MANUFACTURER,
+            name=dhw_data[AZD_NAME],
+            via_device=(DOMAIN, dhw_data[AZD_WEBSERVER]),
+        )
+
+    def get_airzone_value(self, key: str) -> Any:
+        """Return DHW value by key."""
+        value = None
+        if dhw := self.coordinator.data[AZD_HOT_WATERS].get(self.dhw_id):
+            value = dhw.get(key)
+        return value
+
+    async def _async_update_params(self, params: dict[str, Any]) -> None:
+        """Send DHW parameters to Cloud API."""
+        _LOGGER.debug("dhw=%s: update_params=%s", self.entity_id, params)
+        try:
+            await self.coordinator.airzone.api_set_dhw_id_params(self.dhw_id, params)
+        except AirzoneCloudError as error:
+            raise HomeAssistantError(
+                f"Failed to set {self.entity_id} params: {error}"
+            ) from error
+
+        self.coordinator.async_set_updated_data(self.coordinator.airzone.data())
+
+
 class AirzoneInstallationEntity(AirzoneEntity):
     """Define an Airzone Cloud Installation entity."""
 
diff --git a/homeassistant/components/airzone_cloud/water_heater.py b/homeassistant/components/airzone_cloud/water_heater.py
new file mode 100644
index 00000000000..fd1c772b38a
--- /dev/null
+++ b/homeassistant/components/airzone_cloud/water_heater.py
@@ -0,0 +1,164 @@
+"""Support for the Airzone Cloud water heater."""
+
+from __future__ import annotations
+
+from typing import Any, Final
+
+from aioairzone_cloud.common import HotWaterOperation, TemperatureUnit
+from aioairzone_cloud.const import (
+    API_OPTS,
+    API_POWER,
+    API_POWERFUL_MODE,
+    API_SETPOINT,
+    API_UNITS,
+    API_VALUE,
+    AZD_HOT_WATERS,
+    AZD_OPERATION,
+    AZD_OPERATIONS,
+    AZD_TEMP,
+    AZD_TEMP_SET,
+    AZD_TEMP_SET_MAX,
+    AZD_TEMP_SET_MIN,
+)
+
+from homeassistant.components.water_heater import (
+    STATE_ECO,
+    STATE_PERFORMANCE,
+    WaterHeaterEntity,
+    WaterHeaterEntityFeature,
+)
+from homeassistant.config_entries import ConfigEntry
+from homeassistant.const import ATTR_TEMPERATURE, STATE_OFF, UnitOfTemperature
+from homeassistant.core import HomeAssistant, callback
+from homeassistant.helpers.entity_platform import AddEntitiesCallback
+
+from .const import DOMAIN
+from .coordinator import AirzoneUpdateCoordinator
+from .entity import AirzoneHotWaterEntity
+
+OPERATION_LIB_TO_HASS: Final[dict[HotWaterOperation, str]] = {
+    HotWaterOperation.Off: STATE_OFF,
+    HotWaterOperation.On: STATE_ECO,
+    HotWaterOperation.Powerful: STATE_PERFORMANCE,
+}
+
+OPERATION_MODE_TO_DHW_PARAMS: Final[dict[str, dict[str, Any]]] = {
+    STATE_OFF: {
+        API_POWER: {
+            API_VALUE: False,
+        },
+    },
+    STATE_ECO: {
+        API_POWER: {
+            API_VALUE: True,
+        },
+        API_POWERFUL_MODE: {
+            API_VALUE: False,
+        },
+    },
+    STATE_PERFORMANCE: {
+        API_POWER: {
+            API_VALUE: True,
+        },
+        API_POWERFUL_MODE: {
+            API_VALUE: True,
+        },
+    },
+}
+
+
+async def async_setup_entry(
+    hass: HomeAssistant, entry: ConfigEntry, async_add_entities: AddEntitiesCallback
+) -> None:
+    """Add Airzone Cloud Water Heater from a config_entry."""
+    coordinator: AirzoneUpdateCoordinator = hass.data[DOMAIN][entry.entry_id]
+
+    async_add_entities(
+        AirzoneWaterHeater(
+            coordinator,
+            dhw_id,
+            dhw_data,
+        )
+        for dhw_id, dhw_data in coordinator.data.get(AZD_HOT_WATERS, {}).items()
+    )
+
+
+class AirzoneWaterHeater(AirzoneHotWaterEntity, WaterHeaterEntity):
+    """Define an Airzone Cloud Water Heater."""
+
+    _attr_name = None
+    _attr_supported_features = (
+        WaterHeaterEntityFeature.TARGET_TEMPERATURE
+        | WaterHeaterEntityFeature.ON_OFF
+        | WaterHeaterEntityFeature.OPERATION_MODE
+    )
+    _attr_temperature_unit = UnitOfTemperature.CELSIUS
+
+    def __init__(
+        self,
+        coordinator: AirzoneUpdateCoordinator,
+        dhw_id: str,
+        dhw_data: dict,
+    ) -> None:
+        """Initialize Airzone Cloud Water Heater."""
+        super().__init__(coordinator, dhw_id, dhw_data)
+
+        self._attr_unique_id = dhw_id
+        self._attr_operation_list = [
+            OPERATION_LIB_TO_HASS[operation]
+            for operation in self.get_airzone_value(AZD_OPERATIONS)
+        ]
+
+        self._async_update_attrs()
+
+    async def async_turn_off(self, **kwargs: Any) -> None:
+        """Turn the water heater off."""
+        params = {
+            API_POWER: {
+                API_VALUE: False,
+            },
+        }
+        await self._async_update_params(params)
+
+    async def async_turn_on(self, **kwargs: Any) -> None:
+        """Turn the water heater off."""
+        params = {
+            API_POWER: {
+                API_VALUE: True,
+            },
+        }
+        await self._async_update_params(params)
+
+    async def async_set_operation_mode(self, operation_mode: str) -> None:
+        """Set new target operation mode."""
+        params = OPERATION_MODE_TO_DHW_PARAMS.get(operation_mode, {})
+        await self._async_update_params(params)
+
+    async def async_set_temperature(self, **kwargs: Any) -> None:
+        """Set new target temperature."""
+        params: dict[str, Any] = {}
+        if ATTR_TEMPERATURE in kwargs:
+            params[API_SETPOINT] = {
+                API_VALUE: kwargs[ATTR_TEMPERATURE],
+                API_OPTS: {
+                    API_UNITS: TemperatureUnit.CELSIUS.value,
+                },
+            }
+        await self._async_update_params(params)
+
+    @callback
+    def _handle_coordinator_update(self) -> None:
+        """Update attributes when the coordinator updates."""
+        self._async_update_attrs()
+        super()._handle_coordinator_update()
+
+    @callback
+    def _async_update_attrs(self) -> None:
+        """Update water heater attributes."""
+        self._attr_current_temperature = self.get_airzone_value(AZD_TEMP)
+        self._attr_current_operation = OPERATION_LIB_TO_HASS[
+            self.get_airzone_value(AZD_OPERATION)
+        ]
+        self._attr_max_temp = self.get_airzone_value(AZD_TEMP_SET_MAX)
+        self._attr_min_temp = self.get_airzone_value(AZD_TEMP_SET_MIN)
+        self._attr_target_temperature = self.get_airzone_value(AZD_TEMP_SET)
diff --git a/tests/components/airzone_cloud/snapshots/test_diagnostics.ambr b/tests/components/airzone_cloud/snapshots/test_diagnostics.ambr
index 7ec1c2eb2fe..3309c175543 100644
--- a/tests/components/airzone_cloud/snapshots/test_diagnostics.ambr
+++ b/tests/components/airzone_cloud/snapshots/test_diagnostics.ambr
@@ -292,8 +292,10 @@
           'operations': list([
             0,
             1,
+            2,
           ]),
           'power': False,
+          'power-mode': False,
           'problems': False,
           'temperature': 45.5,
           'temperature-setpoint': 48,
diff --git a/tests/components/airzone_cloud/test_water_heater.py b/tests/components/airzone_cloud/test_water_heater.py
new file mode 100644
index 00000000000..98b1d85be48
--- /dev/null
+++ b/tests/components/airzone_cloud/test_water_heater.py
@@ -0,0 +1,186 @@
+"""The water heater tests for the Airzone Cloud platform."""
+
+from unittest.mock import patch
+
+from aioairzone_cloud.exceptions import AirzoneCloudError
+import pytest
+
+from homeassistant.components.water_heater import (
+    ATTR_CURRENT_TEMPERATURE,
+    ATTR_MAX_TEMP,
+    ATTR_MIN_TEMP,
+    ATTR_OPERATION_MODE,
+    DOMAIN as WATER_HEATER_DOMAIN,
+    SERVICE_SET_OPERATION_MODE,
+    SERVICE_SET_TEMPERATURE,
+    STATE_ECO,
+    STATE_PERFORMANCE,
+)
+from homeassistant.const import (
+    ATTR_ENTITY_ID,
+    ATTR_TEMPERATURE,
+    SERVICE_TURN_OFF,
+    SERVICE_TURN_ON,
+    STATE_OFF,
+)
+from homeassistant.core import HomeAssistant
+from homeassistant.exceptions import HomeAssistantError
+
+from .util import async_init_integration
+
+
+async def test_airzone_create_water_heater(hass: HomeAssistant) -> None:
+    """Test creation of water heater."""
+
+    await async_init_integration(hass)
+
+    state = hass.states.get("water_heater.airzone_cloud_dhw")
+    assert state.state == STATE_OFF
+    assert state.attributes[ATTR_CURRENT_TEMPERATURE] == 45.5
+    assert state.attributes[ATTR_MAX_TEMP] == 60
+    assert state.attributes[ATTR_MIN_TEMP] == 40
+    assert state.attributes[ATTR_TEMPERATURE] == 48
+
+
+async def test_airzone_water_heater_turn_on_off(hass: HomeAssistant) -> None:
+    """Test turning on/off."""
+
+    await async_init_integration(hass)
+
+    with patch(
+        "homeassistant.components.airzone_cloud.AirzoneCloudApi.api_patch_device",
+        return_value=None,
+    ):
+        await hass.services.async_call(
+            WATER_HEATER_DOMAIN,
+            SERVICE_TURN_ON,
+            {
+                ATTR_ENTITY_ID: "water_heater.airzone_cloud_dhw",
+            },
+            blocking=True,
+        )
+
+    state = hass.states.get("water_heater.airzone_cloud_dhw")
+    assert state.state == STATE_ECO
+
+    with patch(
+        "homeassistant.components.airzone_cloud.AirzoneCloudApi.api_patch_device",
+        return_value=None,
+    ):
+        await hass.services.async_call(
+            WATER_HEATER_DOMAIN,
+            SERVICE_TURN_OFF,
+            {
+                ATTR_ENTITY_ID: "water_heater.airzone_cloud_dhw",
+            },
+            blocking=True,
+        )
+
+    state = hass.states.get("water_heater.airzone_cloud_dhw")
+    assert state.state == STATE_OFF
+
+
+async def test_airzone_water_heater_set_operation(hass: HomeAssistant) -> None:
+    """Test setting the Operation mode."""
+
+    await async_init_integration(hass)
+
+    with patch(
+        "homeassistant.components.airzone_cloud.AirzoneCloudApi.api_patch_device",
+        return_value=None,
+    ):
+        await hass.services.async_call(
+            WATER_HEATER_DOMAIN,
+            SERVICE_SET_OPERATION_MODE,
+            {
+                ATTR_ENTITY_ID: "water_heater.airzone_cloud_dhw",
+                ATTR_OPERATION_MODE: STATE_ECO,
+            },
+            blocking=True,
+        )
+
+    state = hass.states.get("water_heater.airzone_cloud_dhw")
+    assert state.state == STATE_ECO
+
+    with patch(
+        "homeassistant.components.airzone_cloud.AirzoneCloudApi.api_patch_device",
+        return_value=None,
+    ):
+        await hass.services.async_call(
+            WATER_HEATER_DOMAIN,
+            SERVICE_SET_OPERATION_MODE,
+            {
+                ATTR_ENTITY_ID: "water_heater.airzone_cloud_dhw",
+                ATTR_OPERATION_MODE: STATE_PERFORMANCE,
+            },
+            blocking=True,
+        )
+
+    state = hass.states.get("water_heater.airzone_cloud_dhw")
+    assert state.state == STATE_PERFORMANCE
+
+    with patch(
+        "homeassistant.components.airzone_cloud.AirzoneCloudApi.api_patch_device",
+        return_value=None,
+    ):
+        await hass.services.async_call(
+            WATER_HEATER_DOMAIN,
+            SERVICE_SET_OPERATION_MODE,
+            {
+                ATTR_ENTITY_ID: "water_heater.airzone_cloud_dhw",
+                ATTR_OPERATION_MODE: STATE_OFF,
+            },
+            blocking=True,
+        )
+
+    state = hass.states.get("water_heater.airzone_cloud_dhw")
+    assert state.state == STATE_OFF
+
+
+async def test_airzone_water_heater_set_temp(hass: HomeAssistant) -> None:
+    """Test setting the target temperature."""
+
+    await async_init_integration(hass)
+
+    with patch(
+        "homeassistant.components.airzone_cloud.AirzoneCloudApi.api_patch_device",
+        return_value=None,
+    ):
+        await hass.services.async_call(
+            WATER_HEATER_DOMAIN,
+            SERVICE_SET_TEMPERATURE,
+            {
+                ATTR_ENTITY_ID: "water_heater.airzone_cloud_dhw",
+                ATTR_TEMPERATURE: 50,
+            },
+            blocking=True,
+        )
+
+    state = hass.states.get("water_heater.airzone_cloud_dhw")
+    assert state.attributes[ATTR_TEMPERATURE] == 50
+
+
+async def test_airzone_water_heater_set_temp_error(hass: HomeAssistant) -> None:
+    """Test error when setting the target temperature."""
+
+    await async_init_integration(hass)
+
+    with (
+        patch(
+            "homeassistant.components.airzone_cloud.AirzoneCloudApi.api_patch_device",
+            side_effect=AirzoneCloudError,
+        ),
+        pytest.raises(HomeAssistantError),
+    ):
+        await hass.services.async_call(
+            WATER_HEATER_DOMAIN,
+            SERVICE_SET_TEMPERATURE,
+            {
+                ATTR_ENTITY_ID: "water_heater.airzone_cloud_dhw",
+                ATTR_TEMPERATURE: 80,
+            },
+            blocking=True,
+        )
+
+    state = hass.states.get("water_heater.airzone_cloud_dhw")
+    assert state.attributes[ATTR_TEMPERATURE] == 48
diff --git a/tests/components/airzone_cloud/util.py b/tests/components/airzone_cloud/util.py
index 02c3e18eed2..0583fad7c0e 100644
--- a/tests/components/airzone_cloud/util.py
+++ b/tests/components/airzone_cloud/util.py
@@ -41,6 +41,7 @@ from aioairzone_cloud.const import (
     API_NAME,
     API_OLD_ID,
     API_POWER,
+    API_POWERFUL_MODE,
     API_RANGE_MAX_AIR,
     API_RANGE_MIN_AIR,
     API_RANGE_SP_MAX_ACS,
@@ -315,6 +316,7 @@ def mock_get_device_status(device: Device) -> dict[str, Any]:
             API_ACTIVE: False,
             API_ERRORS: [],
             API_POWER: False,
+            API_POWERFUL_MODE: False,
             API_SETPOINT: {API_CELSIUS: 48, API_FAH: 118},
             API_RANGE_SP_MAX_ACS: {API_CELSIUS: 60, API_FAH: 140},
             API_RANGE_SP_MIN_ACS: {API_CELSIUS: 40, API_FAH: 104},