It’s for storage, to buffer the plumbing system against the ebb-and-flow of a community’s daily water demands, and to help guarantee that water is delivered to its users at high pressure. The water pressure in a closed system of pipes, depends primarily on how much vertical distance there is between the user and the water level in the reservoir. If the city’s water reservoir were a big lake that’s 5 meters downhill of everyone’s house, then you could plumb everyone’s faucets up to that lake, but the water wouldn’t run when they tried to run a bath. Not unless they used a pump to push the water uphill from that lake, anyway.
But if instead the town dammed up a little lake which was 20 meters *above* them on a big hillside, then they could just run a sealed pipe system straight from that lake to their houses, and when they ran the shower, it would come out with plenty of force – no pumping needed.
Damming up a lake at the top of a hill is an expensive and sometimes risky idea, and sometimes there isn’t a hill at all. So the next best thing is to put a great big water tank at the top of a big metal tower.
Usually, the water gets up there by being pumped from some larger reservoir that’s closer to ground level. Sometimes, if the tower serves a very remote area, it might be filled by a big water-tank truck coming by periodically.
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