The recently developed entransy theory is introduced in this paper to tackle the heat transfer processes in building central chilled water systems so as to improve their energy efficiency. We first divide the irreversible heat transfer processes into four categories: (1) air mixing processes; (2) heat transfer processes between chilled water and air; (3) chilled water mixing processes; and (4) heat transfer processes between chilled water and refrigerant. The formulas of entransy dissipation rates for each irreversible process are derived, and then the total entransy dissipation rate in the whole chilled water systems is obtained, which connects the geometrical structures of each heat exchanger and the operating parameters of each fluid directly to the demands of users and the supply of refrigerating unit. Based on the formula of entransy dissipation rate together with the conditional extremum method in mathematics, two optimization equation groups are deduced theoretically. Simultaneously solving such equation groups will easily find the optimal central chilled water system with the highest energy efficiency. Finally, a simple building central chilled water system with two users is taken as an example to illustrate the applications of the newly proposed optimization principle. (C) 2011 Elsevier Ltd. All rights reserved.