A combination washer/dryer laundry appliance includes a recirculating process air flow system in fluid communication with a conditioning system for dehumidification and heating of the process air. The laundry appliance may be adaptable for use in a recreational vehicle with a water conservation mode setting for one or more laundry cycles. In the conservation mode, condensate water from a prior drying cycle is stored in a sump for use in a subsequent wash cycle.