Open loop Ground Source Heat Pump (GSHP) systems typically depend on the circulation of groundwater from a supply well to a discharge area, often another well. The water is pumped through a heat exchanger and into the Heat Pump unit where the heat is extracted; the water is then discharged. These systems are now subject to strict constraints regarding ground water contamination, ground water removal and proximity to certain structures, boundaries and facilities.

It is also possible to utilise over-ground water sources in an open loop GSHP system, such as lakes and ponds. These systems are also subject to the granting of the correct permissions and licences from the Environment Agency, and may require supplementation from either geothermal boreholes or trenches as they may be more susceptible to seasonal air temperature fluctuations unlike other GSHP and geothermal solutions.
Water quality is an important issue with open loop GSHP systems. Mineral deposits can build up inside the heat exchanger, iron and other impurities can clog a return well, and organic matter from ponds and lakes can quickly damage a GSHP system. Water should be tested for acidity, mineral content and corrosiveness.