I’m going to answer my own question: Yes. Absolutely. But only if said water tower looked like this:

Tom Dixon, a British design and manufacturing company, converted a 60-foot water tower, in North Kensington, London, into a gorgeous apartment. It has three floors complete with a kitchen, living room, two bedrooms, two bathrooms, a living room and (sigh of envy) a roof terrace. It’s going for $3,900 a month–which, scarily, isn’t too bad if you compare it to NYC prices for similarly sized digs.

I love how the big windows lets lots of light into the space:

There are tons of water towers in NYC. I’m wondering when someone will convert one into a luxury apartment here on this side of the pond!

(Photos via Gizmag, via Architizer; thanks to Shawn for introducing me to the link)