felt that very large conservation opportunities existed among this segment of the population. Energy Conservation in Public Buildings Energy conservation in public buildings was an important activity of most city energy offices because (1) rising fuel costs are an additional strain on municipal budgets already affected by inflation, (2) it would improve the credibility of promoting conservation activities in the private sector, and (3) most cities had a large stock of public buildings, many of which were relatively energy inefficient. Fuel Dependency Several cities perceived themselves to be overly dependent on certain fuels, especially oil and natural gas, and therefore vulnerable to supply disruption and price escalation. The success and visibility of federal, state, and local conservation programs together with the increasing cost and uncertainty of supply of energy have led to an emerging national consensus for energy conservation, energy efficiency, energy management, and renewable energy technologies. There has been considerable progress toward conservation in residential and certain public buildings and in increasing the efficiency of heating and air conditioning equipment and consumer products. However, we have realized little of the potential for energy conservation in high density urban areas. Because of their physical and complex institutional and socioeconomic characteristics, these areas are less amenable to extensive building conservation measures or to the use of renewable natural resources. When considered on a community scale, however, there is an appropriate technical solution that is uniquely suited to urban areas and that can enhance the interaction between humanity and renewable nature for a time of energy conservation. The technology is district heating and cooling, a thermal distribution system that carries hot water or steam from one or more central heat sources to provide the energy needs of commercial, residential, institutional, and industrial buildings. This paper addresses characteristics of urban areas that make them uniquely suitable for