The key objective of this study is to analyse the heat transfer processes involved in the evaporation and condensation of water in a water distillation system employing a thermoelectric module. This analysis can help to increase the water production and to enhance the system performance. For the analysis, a water distillation unit prototype integrated with a thermoelectric module was designed and fabricated. A theoretical model is developed to study the effect of the heat added, transferred and removed, in forced convection and laminar flow, during the evaporation and condensation processes. The thermoelectric module is used to convert electricity into heat under Peltier effect and control precisely the absorbed and released heat at the cold and hot sides of the module, respectively. Temperatures of water, vapour, condenser, cold and hot sides of the thermoelectric module and water production have been measured experimentally under steady state operation. The theoretical and experimental water production were found to be in agreement. The amount of heat that needs to be evaporated from water-vapour interface and transferred through the condenser surface to the thermoelectric module is crucial for the design and optimization of distillation systems.