This paper is concerned with the development of a new method for making and separating ice in-water and saving floated ice by installing an evaporation panel in an ice storage tank. The new method shows very good heat transfer efficiency than that of the convectional method. It is because the evaporation panel is directly contacted with water in the storage tank. The experiments were performed by varying inlet and outlet refrigerant temperatures of its evaporator. From the experimental results, the operating characteristics of in-water harvest-type ice storage system were investigated by measuring temperature and pressure at each point of the ice storage system and power required to operating compressor respect to the changes of the inlet and outlet refrigerant temperature of evaporator. It can be think that defrost frequency decreased and heavy ice created as the refrigerant temperature of evaporator outlet and defrost setting temperature is low so gotten result can effect to release efficiency. Also, consumption power, condensing heat quantity, refrigerating capacity and performance efficiency decreased as time goes by. Therefore, these results provide the basic data for system optimization, performance improvement and the possibility of application to other fields.