an apparatus for containing and dispensing fluids comprises a collapsible , fluid - tight bag having an bag internal volume for storing fluid and at least one opening thereto , dispensing mechanism positioned one opening of the at least one opening for selectively dispensing fluid from the collapsible , fluid - tight bag ; and a rigid container having a container internal volume and a partition to divide the container internal volume into a first chamber and a second chamber , the partition having an opening , the dispensing mechanism extending through the opening and secured in the opening , the collapsible , fluid - tight bag positioned in the first chamber , wherein the second chamber is removable . the bag is formed of a flexible plastic material . the dispensing mechanism is a spigot that has a neck mechanically coupled to the opening of the bag , whereby the spigot is in fluid communication with the container internal volume . a method of making a container for shipping and dispensing bulk liquids comprises the steps of manufacturing a container having a protective housing and a main housing with an opening therebetween , the protective housing forming a protective internal cavity , the main housing forming a main internal cavity , the protective housing is removable ; positioning a fluid - tight , collapsible bag inside the main housing , the fluid - tight , collapsible bag having a dispensing apparatus ; filling the fluid - tight , collapsible bag with a liquid ; extending the dispensing apparatus through an opening in a surface of the main housing to make the main internal cavity to be in fluid communication with the protective internal cavity with a dispensing mechanism and passing the dispensing mechanism through the opening to extend from the first chamber into the second chamber ; closing the container whereby it can be stacked or shipped without damaging the dispensing apparatus ; and selectably removing the protective housing .