A district cooling system (DCS) is superior to conventional air conditioning as it helps to reduce energy consumption and protect the environment by reducing carbon dioxide emissions. The main disadvantages of a DCS are the high initial investment costs and the long payback period. The distribution network (DN) represents a large share of initial investment costs; therefore, it has a great impact on the decision to construct a DCS. In order to ensure the competitiveness of DCS, the DN has to be optimized. In this paper the exergoeconomic concept is applied to evaluate a DN in a DCS. The objective function in the analysis is defined as the exergy based cost of the final product-cold. The exergy-based cost of cold depends on the total annual cost of a DN, the input exergy to the DN, the exergy losses and the exergy destruction. The aim of this study is to find the exergetic optimal pipe diameter and the insulation thickness, as well as the exergoeconomic optimal pipe diameter and the insulation thickness. The analysis was made for different cooling capacities and for two types of pipes: pre-insulated steel pipes, where the insulation material is polyurethane, and polyethylene pipes, without any insulation. (C) 2017 Elsevier Ltd. All rights reserved.