An ozone generating system includes a water reservoir for accepting water froma water source, such as an inverted water bottle or a point of use watersource. Once delivered to the reservoir, water therein may be dispensed forhuman consumption. An ozone generator produces ozone and such ozone isdelivered tot water within the reservoir through an ozone diffuser connectedto the ozone generator and positioned within the water reservoir at a centralbottom location. The water reservoir includes a cover which is sealed closedto prevent release of generated ozone into the atmosphere. Filter means, suchas an active carbon filter is provided which captures and neutralizes excessozone within the reservoir. Preferably the ozone generator is mounted insideof the dispenser, either above water reservoir or below water tank, inside ofcooler cabinet.