Water Cooled vs air cooled condenser..
To understand how it works is fairly simple, instead of the condenser having a fan blow over it , it is a smaller sealed unit with the condenser coils in it, water from either the house water line or, in the older central units, from a wooden cooling tower outside, usually on the roof,flows over the coils while the unit is in operation, carrying the heat from the hot refrigerant away, this is much more efficient than the newer air cooled units but fell out of favor 1 because water isnt cheap anymore and 2 it is much more complex...IE water valves much like a washer, and on the units with cooling towers, pumps to recirculate the water.plus, cooling tower models need regular servicing, basically cleaning.In my hometown we had a Carrier dealer, and still today there are a few of these units still running putting out ICE COLD air, much cooler than the newer units, of course Carriers had cast iron industrial grade compressors and used Freon 500 or 502, I cant remember which, a very efficent effective refrigerant.