Lower future heat demands and lower availability of non-fossil high temperature heat supply are expected future market conditions that restrain the long-term viability of contemporary district heating systems. Hence, current district heating technology should be enhanced to increase system performance in new heat distribution areas. This paper aims to outline a proposal for technical improvements required to achieve lower annual average return temperatures in new residential buildings to improve viability in future market conditions. The proposed technical solution consists of three principle changes: three-pipe distribution networks, apartment substations, and longer thermal lengths for heat exchangers. The three technical modifications aims at addressing system embedded temperature errors. Furthermore, a simulation model was developed to assess the proposed technical solution concerning different energy performances of buildings and different thermal lengths in heat exchangers. The results show that implementation of the three technical modifications reaches time-weighted annual average return temperatures of 17-21 degrees C with supply temperatures of about 50 degrees C. The results also verify the increased necessity to separate the network return flows into delivery and recirculation flows in residential substations as energy performance in buildings increase. (C) 2018 The Authors. Published by Elsevier Ltd.