Klamath Falls, Oregon, is located on a Known Geothermal Resource Area (KGRA), and the residents have made use of the resource, principally in the form of hot water for space heating, at least since the turn of the century. The local use appears to be somewhat unique and is the most successful attempt at using geothermal water for space heating in the United States.

More than 500 wells have been drilled into the reservoir. The system is not geologically homogeneous. Great variations in horizontal permeability and many vertical discontinuities exist because of stratigraphy and structure of the area. Basalt flows, eruptive centers, fluvial and lacustrine deposits, diatomite and pyroclastic materials alternate in the rock column.

Today, most of the eastern portion of the City of Klamath Falls is heated by hot water. The principal heat extraction system is the closed loop downhole heat exchanger.