for many years with hot water at about 1000C. In order for district heating to be successfully applied on a large scale, the systems should utilize cogenerated heat from large power plants. However, these plants are presently located approximately 80 km away from the urban centers. This necessitates the development of long distance, low cost transport systems. It would also be advantageous for the transport systems to include thermal storage capability to allow for load variation. Increasing the temperature of the thermal transport medium, to 200-2600C, would decrease cost of the system and provide an opportunity to serve large industry process heat requirements. A research program is needed to develop such a medium temperature transport system with significant storage capacity, such as use of molten salts, organic, or heat pipe technology. There are many other possible improvements in district heating technology that would enhance its implementation by reducing cost and simplifying installation. Such needed improvements include advanced materials and designs for building and waste heat recovery heat exchangers, reliable and inexpensive energy meters that are feasible to use with individual apartments, and development of smaller distributed cogeneration plants such as fuel cells or the coal-fired atmospheric fluidized bed technology. Other improtant research needs include placing a potential community district heating project in proper perspective with respect to energy conservation measures that can be applied to individual buildings and other local goals and programs that would compete for capital funds. Many of the nation's cities find themselves in serious financial difficulties caused by out-migration of business and people, a dwindling tax base, and spiraling costs for providing services. Energy, while perhaps not a primary cause of urban problems, continues to increase rapidly in price and the supplies of petroleum and natural gas promise to become increasingly uncertain. Some cities have included energy in their planning process and additional cities will undoubtedly feel the need to do so in the future. Most cities lack technical expertise for considering energy conservation options, and the concept of local community-wide systems (such as district heating) are not generally well understood. A more important lack of understanding, however, is the relationship between local energy issues and community conservation r