With a watercooled ice machine, water is used instead of air to transfer heat out of the internal components of the machine. Water running along the condenser coils allows the heat to be released, draining the hot water out of the unit which maintains the optimal temperature for ice production.
In places where it’s more difficult to control external temperature, water cooled ice machines come in handy. Clearly, an air-cooled ice machines would be greatly impacted by higher surrounding temperatures, but a water cooled ice maker doesn’t need the ambient air to remove heat. This means the output of the machine can remain high, even when the temperatures are too.