The groundwater heat pump (GWHP) system is an open-loop system that draws water from a well or surface water, passes it through a heat exchanger and discharges the water into an injection well or nearby river. By utilizing the relatively stable temperature of groundwater, GWHP system can achieve a higher coefficient of performance and can save more energy than conventional air-source heat pump (ASHP) system. The performance of the system depends on the condition of groundwater, especially temperature and depth, which affect performance of the heat pump and system. For the optimization of design and operation of GWHP systems, it is necessary to develop a simulation tool which can predict groundwater and heat flow and evaluate system performance comprehensively. In this research, 3D numerical heat-water transfer simulation and experiments utilizing real-scale equipment has been conducted in order to develop the optimization method for GWHP systems. Simulation results were compared with the experimental results, and the validity of the simulation model was confirmed. Furthermore, several case studies for the optimal operation method have been conducted by calculating the coefficient of performance on various groundwater and well conditions. (C) 2009 Elsevier B.V. All rights reserved.