An appliance air/water handling system includes a rotating drum, airflow and fluid paths for directing process air and fluid, respectively, therethrough. First and second heat exchangers are in direct engagement with the airflow and fluid paths, respectively. A reversible refrigerant circuit delivers refrigerant through the first and second heat exchangers to alternatively define washing and drying conditions. In the washing condition the first heat exchanger cools the process air into cooled process air, and the second heat exchanger heats the fluid to define a heated fluid that is directed into the drum. In the drying condition the first heat exchanger heats the process air to define heated process air that is directed through the drum and through a third heat exchanger, and the second heat exchanger cools the fluid to define a cooled fluid that is directed to the third heat exchanger intersect with the heated process air.
