Water on the earth constantly goes through cycles, called the water cycle, where it is evaporated and reused. Heat raises the temperature of the surface of water and turns water molecules into gas. This gas rises into the air, forming what is known as evaporation. The water evaporates and dissipates into the air and forms what is known as condensation.
Condensation is changing the evaporation of the gas molecules back into a liquid state. One example of condensation are rain clouds formed by the evaporation of water. The evaporated water gas molecules condense to form rain.
The cooling of water comes after heat has evaporated the water molecules into gas molecules. Since heat is lost during evaporation, the temperature of the water slightly decreases and cools, resulting in a lower temperature and cooling of the water.