This paper presents a systematic methodology for the design of a steam distribution network (SDN) which satisfies the energy demands of industrial processes. A superstructure is proposed to include all potential configurations of steam systems, and a mixed-integer nonlinear programming (MINLP) model is formulated accordingly to minimize the total annualized cost. The proposed model determines simultaneously (i) the structure and operational configuration of a steam system and (ii) the interaction between the steam system and the heat recovery system. A series of case studies are presented to demonstrate the feasibility and benefit of the proposed approach.