River water source heat pump (RWSHP) systems are being proposed to reduce the energy consumption and carbon emissions of buildings. The RWSHP system is actively applied to large-scale buildings due to its stable performance. The application of RWSHP in large-scale facilities requires an accurate capacity design with considerations of building load, heat source, and environment conditions. However, most RWSHP systems are over-designed based on peak load of buildings. These design methods, based on peak loads, are economically and environmentally disadvantageous. Therefore, this paper aims to development an optimal design method, both economically and environmentally, for the RWSHP system. To develop this optimal design method, a simulation model was created with an optimization algorithm. The economics of the RWSHP system were calculated bases on present worth of annuity factor. Moreover, CO2 emissions were estimated using the life cycle climate performance proposed by the International Institute of Refrigeration. The total cost of the proposed RWSHP system that apply the optimum design method decreased by 24% compared to conventional RWSHP systems. Moreover, CO2 emissions of the proposed RWSHP system reduced by 4% compared to conventional RWSHP systems.