In the present study, we have developed an optimal heat supply algorithm which minimizes the heat loss through the distribution pipe line in a group energy apartment. Heating load variation of a group energy apartment building according to the outdoor air temperature was predicted by a correlation obtained from calorimetry measurements of all households in the apartment building. Supply water temperature and mass flow rate were simultaneously controlled to minimize the heat loss rate through the distribution pipe line. A group heating apartment building located in Hwaseong city, Korea, which has 1473 households, was selected as the object building to test the present heat supply algorithm. Compared to the original heat supply system, the present system adopting the proposed control algorithm reduced the heat loss rate by 10.4%.