This article provides the state-of-the-art on the optimal planning and design of future district heating (DH) systems. The purpose is to provide practical information of first-step actions for countries with a low DH market share for heating and cooling supply. Previous research showed that for those countries, establishing a heat atlas with accurate geographical data is an essential prerequisite to promote the development of DH systems. In this review, essential techniques for building a high-quality heat atlas are elaborated. This includes a review of methodologies for district thermal energy demand prediction and the status of the integration of sustainable resources in DH systems. In the meanwhile, technical barriers for the implementation of various sustainable heat sources are identified. Furthermore, technologies for the optimal planning of DH systems are discussed. This includes the review of current approaches for the optimal planning of DH systems, discussions on various novel configurations which have been actively investigated recently, and common upgrading measures for existing DH systems.