In this study, the compression heat pump system using wastewater, as a heat source, from hotel with sauna was designed and analyzed. This study was performed to investigate the feasibility of the wastewater use for heat pump as a heat source and to obtain engineering data for system design. This heat pump system uses off-peak electricity that is a cheap energy compared to fossil fuel in Korea. For this, the charging process of heat into the hot water storage tank is achieved only at night time (22:00-08:00). TRNSYS was used for the system simulation with some new components like the heat pump, which we create ourselves. As a result, it was forecasted that the yearly mean COP of heat pump is about 4.8 and beat pump can supply 100% of hot water load except weekend of winter season. The important thing that should be considered for the system design is to decrease the temperature difference between condenser and evaporator working fluids during the heat charging process by the heat pump. This heat pump system using wastewater from sauna, public bath, building, etc. can therefore be effectively applied not only for water heating but also space heating and cooling in regions like as Korea. (c) 2004 Elsevier Ltd. All rights reserved.