Philip, South Dakota in located in the southwestern part of the state, on U.S. Highway 14, about 87 miles west of Pierre. It has a population of about 1,100. The district heating project was one of 23 cost shared by USDOE starting in 1978. The city project was added on to the original USDOE cost shared project for the Haakon School, located on a hill above town. Waste water from the school has been used to heat eight buildings in the downtown area since the 1981-1982 heating season. The Philip Geothermal Corporation (for profit) was formed to maintain and operate the downtown system, and pays the school district for the use of the water