Photovoltaic/Thermal systems or PVT systems convert solar energy into electrical and thermal energy, simultaneously. The performance of photovoltaic thermal systems can be affected by different factors like type of working fluid which eliminate heat from PV cells, absorber design, number and type of cell. In this paper, the history and some recent progress in PV/T systems which utilize water as heat removal medium for different applications are presented. The future direction in the research and development of water based PVT systems likewise describes.