An Integrated Collector Storage (ICS) solar water heater was designed, constructed and studied with an emphasis on its optical and thermal performance. The ICS system consists of one cylindrical horizontal tank properly mounted in a stationary symmetrical Compound Parabolic Concentrating (CPC) reflector trough. The main objective was the design and the construction of a low cost solar system with improved thermal performance based on the exploitation of the non-uniform distribution of the absorbed solar radiation on the cylindrical storage tank surface. A ray-tracing model was developed to gauge the distribution of the incoming solar radiation on the absorber surface and the results were compared with those from a theoretical optical model based on the average number of reflections. The variation of the optical efficiency as function of the incident angle of the incoming solar radiation along with its dependence on the month during annual operation of ICS system is presented. The ICS device was experimentally tested outdoors during a whole year in order to correlate the observed temperature rise and stratification of the stored water with the non-uniform distribution of the absorbed solar radiation. The results show that the upper part of the tank surface collects the larger fraction of the total absorbed solar radiation for all incident angles throughout the year. This is found to have a significant effect on the overall thermal performance of the ICS unit. In addition, the presented results can be considered important for the design and the operation of ICS systems consisting of cylindrical tank and CPC reflectors.