District heating is like a big system of pipes that carry hot water to buildings in an area like a neighborhood. It works by having one big source of heat, like a big furnace or a power plant, and then a series of pipes that go from the heat source to buildings in the area. The heat from the big source is used to warm the water in the pipes, and that hot water is then carried to the buildings, where it is used in heating systems. This means that the buildings in the neighborhood don't need to have their own furnaces or boilers to produce heat, so it can save energy and money for the area.