The City of Klamath Falls became interested in the possibility of a establishing geothermal district heating system for downtown government buildings in January 1977. Since that time, the project has undergone some controversial and interesting developments that may be of educational value to other communities contemplating such a project. The purpose and content of this article is to identify the historical development of the project; including the design of the system, well owner objections to the project, aquifer testing, piping failure, and future expansion and marketing incentives