A water resistant absorbent towel dispenser. The dispenser includes a container having top, bottom and side walls housing a supply of absorbent towels, and an exterior handle for facilitating transport of the dispenser. The top wall includes a finger-accessible opening through which absorbent towels may be withdrawn. In certain embodiments, the top wall is convex upwardly, but is flexible to enable it to be depressed when dispensers are stacked vertically so as to come into load bearing contact with the towel supply. In some embodiments, the top and bottom walls have interlocking configurations to add lateral stability to vertically stacked dispensers.