Temperature Control Lever
This lever sets the position of the blend-air door to direct the flow of air through the heater core ("HOT" position), around the heater core ("COLD" position), or a mixture of both (modulated temperature between full "HOT" and full "COLD").
The lever also controls the opening and closing of the water valve. In any position except "COLD", the water valve is open, allowing engine coolant into the heater core.