Mamestra,
My water heater is mounted in a separate compartment, surrounded by heavy gauge sheet metal. It would have required cutting an access panel through it and the outer skin of the heater itself, to install the thermostat. There was virtually no room to make the necessary cuts and even if it could have been done, I would have had to fashion some sort of access panel to get at the thermostat heat setting screw and the circuit breaker reset button. Assuming all of that could have been done, it still would have required running 120VAC through the wall to a convenient place inside the coach, or a pair of smaller wires to activate a 12VDC relay not provided) to switch it on and off. I decided it could be done much easier by putting a relay in a small box outside, along with a toggle switch to go from propane to electric or both, and add a diode to be able to utilize the existing heater switch inside the coach and thermostat to control them both. Yes, I have to go outside to select the heat source(s) I want to use, but don't have to do that very often. When boondocking, it stays on propane only, when hooked up to shore power it stays on electric only, or I switch to both if I plan on doing several loads of laundry and need faster recovery times.