Liquid desiccant is energy efficient for dehumidification in air-conditioning systems. In this study, a novel dedicated outdoor air system (DOAS) adopting lithium chloride solution as liquid desiccant is proposed to process supply air. The DOAS mainly consists of a membrane-based total heat exchanger, a liquid dehumidifier, a regenerator and a dry cooling coil. It can realize independent temperature and humidity controls for supply air. Control strategies for the supply air dehumidification and cooling process as well as the desiccant solution regeneration process in the DOAS are developed and verified. The control performances of the proposed dedicated outdoor air system are investigated at different operation conditions by simulation tests. The results show that the DOAS is more suitable for hot and humid climates. The effects of the total heat exchanger on the performance of the DOAS are also evaluated. It can improve the system energy performance by 19.9-34.8%. (C) 2010 Elsevier Ltd. All rights reserved.