To achieve high heat pump efficiency, groundwater heat pump (GWHP) system uses groundwater, which is relatively stable AT temperature compared with outdoor air, as a heat source. However, it is difficult to meet annual heating and cooling loads using only groundwater as a heat source. In order to optimize the operation method of GWHP systems, it is necessary to develop a system utilizing both groundwater and air sources according to the building load conditions. Furthermore, during intermediate seasons (such as spring and autumn) with reduced heating and cooling loads. GWHP system is less efficient than air source heat pump (ASHP) system according to temperature conditions. In order to more efficiently use GWHP systems, it is necessary to develop a system which utilizes both groundwater and air sources according to temperature conditions and building loads. This research has developed a GWHP system that employs a hybrid heat pump system with groundwater wells using dual groundwater and air heat sources. In this paper, the annual performance of the developed system has been calculated, and several case studies have been conducted on the effect of introduction location, refrigerant and pumping rate. Furthermore, the coefficient of system performance and the effects on underground environments have been evaluated by real-scale experiment using two wells. (C) 2010 Elsevier B.V. All rights reserved.