water valve purpose?

Thanks guys for the quick responses! So on my 68 RR, that temp control on the dash only operates a door to let the heat from the heater core enter the fan area and give me heat. There is always heat going to it, right?

That's pretty much it. Actually, the temp lever opens a door that mixes fresh air with air passing through the heater core. Without mixing, there is no way to regulate the temperature.

The hot water valve shuts off flow to the heater core. Unfortunately, it does not shut off the return. The negative pressure created by this situation encourages the hot water shut off to leak creating some residual heat in the system.

To answer your original question, yes the valve can be removed although something needs to be done with the hoses that are open. Either install a splice or replace with a single run of hose. IMO the interior of the car will be warmer when the A/C is not being used than if the valve were in place and functioning.