District heating (DH) systems that utilize waste heat have a great energy saving impact. Based on detailed energetic and exergetic performance analysis of the power plant cycle, it is possible to supply cheaper energy to consumers rather than conventional heating systems meanwhile a small portion of power reduction takes place. In this study, a district heating system, which uses waste heat of a thermal power plant (PP) as energy source is designed and then analyzed for various operational conditions from viewpoint of thermal and hydraulic performance. The implementation site in this study is selected as dwelling estate located at Soma which is in Manisa province of Turkey. Throughout the study, design and analysis of DH system contains several steps: Before all, based on architectural, meteorological and fieldwork studies, peak heat loads are determined for each type of buildings, considering various types of heat transfer factors. Using a software package, network design is carried out numerically. Then a tool is developed to analyze annual heat demand distribution in order to compare estimated and realized data given for 2013-2014 heating season. Lastly, a heat storage tank coupled with existing DH system is dimensioned.