The thermostat housing has the thermostat, but it also has a small bypass port for the heater core. This lets the thermostat stop coolant from moving out of the head and into the radiator, but still allows the (hot) coolant to pass to the heater (otherwise the heater would only work when the thermostat was open). Meanwhile the water pump draws coolant from the radiator and the heater core, and pushes it into the block. When the thermostat is open, the pump is able to draw larger amounts of coolant than when the thermostat is closed. However there is always some circulation since the bypass port in the thermostat housing is always open and never closes