An indirect district heating system (IDHS) with heated floor area of 851 031$m^2$ and ten heat exchange stations was modeled in this study. An aggregated steady state model for the system was developed to study the impact of important system parameters. A dynamic model of the IDHS was developed based on energy balance principles. The dynamic model consists of subsystem models such as boiler, pipe network, heat exchanger, terminal heater and zone models. Simulation results of the dynamic responses show that the overall efficiency of the IDHS system is 78.7%, and the two highest heat loss components are the boiler heat losses and the secondary water makeup loss.