Good morning, AVID LEARNER,
The little water heater looking thing is called a Receiver/Dryer. It is used for vehicles that have a Thermal Expansion Valve as part of their A/C System. It is responsible for separating gas from liquid since the A/C Compressor would be destroyed if liquid gets in. It also removes moisture using desiccant. It is similar to an Accumulator. The Receiver/Dryer is located on the high-side of the system and the Accumulator is on the low-side of the system. A vehicles A/C system will have either one or the other depending on its design.
Most companies make you replace this part when you buy a new A/C Compressor otherwise they won't warranty the new part.
Here is a good article explaining the 5 major parts of your A/C system:
https://www.cbac.com/clermont/media-center/blog/2016/march/our-experts-breakdown-the-5-major-parts-of-your-/#: :text=Your%20car%20may%20have%20either,for%20separating%20gas%20from%20liquid.
I have added a picture of a new Receiver/Dryer for you.
Let me know if I can help with any other information.
Thank you,
Brendon
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Monday, June 5th, 2023 AT 2:45 AM