This invention is a water and ice cooler combination including 1) a main cooler container assembly provided with a cool fluid supply assembly to receive and dispense cooled fluid therefrom; and 2) a compartment separation assembly mounted within the main cooler container assembly to provide wet and dry storage areas. The main cooler container assembly includes a rectangular primary housing assembly with an enclosure lid assembly pivotally connected thereto. The cooled fluid supply assembly includes a fluid container compartment mounted in a lower portion of the primary housing assembly and a fluid discharge spigot to selectively remove cooled fluid therefrom. The compartment separation assembly is provided with spaced separator wall members having top edge seal members to seal with the enclosure lid assembly to provide a sealed, dry storage area. An illumination assembly is connected to the enclosure lid assembly to selectively provide illumination to a storage cavity of the primary housing assembly for night time usage.