We have the Everpure water chiller but it does take up room in the cabinet and as Al says, it needs ventilation. Ours is installed in the powder room cabinet which is on the same wall as the sink so the tubing just goes through the wall. It's also hooked up to a hot water heater which is in the sink cabinet. Our sink cab is only 24" so there wasn't room for the chiller, hot water heater, garbage disposal and the RO filter system. We modified the standard cabinet in the powder room by cutting out a 2x6" rectangle of the floor between the toe kick and the front of the cabinet. We also took out the center fake drawer front and replaced it with a decorative brass grill. Not super beautiful for a powder room used by all our guests, but it works :) The chiller gets the water down to the high 30's low 40's if you run it a bit before putting water in a glass. It's filtered which we also like. We have a hot/cold faucet so get filtered instant hot or cold water quickly. One thing you should note is the water goes through the filter into the chiller and from the CHILLER into the hot water tank so the hot water tank fills with ice cold water. This is certainly not energy efficient and bothers me somewhat but we live with it.

The 7 Series by Follett is really the cheapest version out there of what you are looking for. While the demand for specialty in-home ice makers is high the truth is that most people aren't prepared to pay the amount that they actually cost. Pretty much all major brands of ice machine manufacturers make ice and water dispensers (i.e. Hoshizaki, Manitowoc, Scotsman, Ice-O-Matic, etc.) If you can't find anything in an undercounter application maybe consider a counter top model? That may lower your price as well. Don't give up though. I wish I could tell you that you will find a good deal but honestly in the time that I've worked for a kitchen equipment company I have yet to see a home ice & water dispenser for less than $1000, even when it is on sale. Look for free shipping, too. Our company is always offering free shipping on ice machines so I'm sure there are other offers out there as well. Good luck! And if you find a reasonably priced ice & water dispenser be sure to let us know, I've been wanting one of those for ever!

Concern about water quality in our area and our building -- along with the ridiculous cost of buying bottled water in plastic containers and then recycling the plastic -- let me to plunk down more than I thought I'd spend on a filtered cold-water spigot from EWS. I have a Britta which is a toy in comparison. The filter has 2 chambers plus ultraviolet light and is doing such a good job that when it's used in our humidifier it leaves no dirt, nothing slimy, no residue to clean -- nada. It gives us clean water for drinking, coffee, cooking etc. I refill a couple of small plastic water bottles to take to the gym or keep by the bed. I have a decorative glass bottle I use for refrigerated water to pour. We have it on the left side of a 30" sink. Back a month or so ago there was a thread on kitchen cleanliness but water was never mentioned. Unclean water always has been an issue in the third world and while drinking water is safe in most of our municipalities here in No America, I look at the color of water coming out of the pipes in my building and there is simply no way I'm drinking it without a filter. This may not be the case for everyone. But I'll link the EWS filter page here. My appliance guy recommended the FUGAC250 but I upgraded to the UU250 in case anyone is interested. I'm very pleased with our reno, not because it gave me a palatial kitchen or even a showy one. But there were some really practical decisions made that have really worked out and this water filter is at the top of the list.

I'd say it depends on where you are living. I'm in the Lehigh Valley in Pennsylvania, which is notorious for contaminated tap water, so I have both an Aquaversa and a Brita Filter for pitchers. I also try to stay away from the bottled water too because of the environmental issues. But I would find out how clean the local water is before making any major changes or paying extra money.