Condensing gas instant water heater is a high efficient and environment-friendly hot water heater. It has double heat exchangers. In additional to the primary exchanger conventional heaters generally have, it has an extra condensing heat exchanger (or latent heat exchanger). When in operation, the high temperature smoke goes upward, from primary heat exchanger to the condensing heat exchanger, while water flow goes downward, first through condensing heat exchanger and then main exchanger. The cold water absorbs the residual heat in the condensing heat exchanger first and after that it takes in heat of the main exchanger. All these heat added up makes its efficiency much higher than regular water heater.