Sometimes faucet and spigot terms are interchanged. However, they are quite different in functionality. Spigots are mainly attached to the exterior of the house, but faucets are mainly for interior water use. Faucets can mix warm and cold water where spigots are made for one form of liquid. When winter comes, you need to drain the pipe to prevent any damage and smooth water flow, but this is not always the case with faucets.