A diverter valve and a transfer valve are two common types of faucet valves. They both distribute the water supply, but in different ways. A diverter valve redirects the water supply between the shower or tub, with only one of them having flowing water. This means that if you want to take a shower, you have to use the diverter to redirect the flow of water from your tub to your shower. A transfer valve distributes the water supply through multiple paths meaning that both your shower and tub have access to water flow. You can use either one for your showering needs.