Re-circulating cooling water systems offer the means to remove heat from a wide variety of industrial processes that generate excess heat. Such systems consist of a cooling tower and a heat-exchanger network that conventionally has a parallel configuration. However, reuse of water between different cooling duties allows cooling water networks to be designed in a series arrangement. This results in performance improvement and increased cooling tower capacity. In addition, by the integration of ozone treatment into the cooling tower, the cycle of concentration can be increased. The ozone treatment also dramatically reduces the blow-down that, in turn, is environmentally constructive. In this study, a new environmental-friendly and cost-effective design methodology for cooling water systems was introduced. Using this design methodology, Integrated Ozone Treatment Cooling System (IOTCS), achievement of minimum environmental impacts and total cost were afforded through a simultaneous integration of the cooling system components using an ozone treatment cooling tower and optimum heat-exchanger network configuration. Moreover, in the proposed method, the cooling tower optimum design was achieved through a mathematical model. The IOTCS design method is based upon a complex design approach using a combined pinch analysis and mathematical programming that provides an optimum heat-exchanger configuration while maximizing water and energy conservation and minimizing total cost. Related coding in MATLAB version 7.3 was used for the illustrative example to obtain optimal values in the IOTCS design method computations. The results of the recently introduced design methodology were compared with the conventional method. Copyright (C) 2009 John Wiley & Sons, Ltd.