Purpose of cold water tank in basement?

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We are looking to possibly rent a house in the country (Canada). The water supply is well water and everything runs on a septic system. I asked if there is a water softener system installed and she told me there was not. In the basement, there is a hot water tank (water heater), and beside it another one. The landlord said it is the cold water tank. I asked her what the purpose of it is, and she said it feeds the hot water tank.

My in-laws have lived in a house with well water and septic system, and I remember that they had a water softening system and a hot water tank (all in the basement). But I have never heard of having a cold water tank. Just the water coming from the well, to the house, through the water softening system, and then on to the rest of the house as well as the hot water tank.

So what is the purpose of having a cold water tank beside the hot water tank?
 
The experts will chime in here soon on this matter, but from what I know it is to stop the constant on-off of the pump in the well, allowing it to last longer and use less electricity.
 
I'm sure your in-laws had a pressure tank. It could have been in a pump house or some other location. Havasu is correct that it stops the pump from short cycling.

John
 
I remember that my in-laws had a switch that reset the pump in case it stopped. For example, during a really dry summer, we used too much water that day and the well went dry, so the pump had an automatic shut-off. The pump had to be reset by a switch, and the switch was located by the water softener and the hot water tank. I did not realize that pressure tanks existed. I thought that the pump was what gave the pressure.
 
The pump does develop the pressure, but a large volume of water under pressure can be stored in the tank. If it weren't for the storage tank, the pump would constantly turn on and off when water was in use. The constant cycling would destroy the pump motor very quickly.
 
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