This paper presents an open air-vapor compression refrigeration system for air conditioning and hot water cooled by cool water and proves its feasibility through performance simulation. Pinch technology is used in analysis of heat exchange in the surface heat exchanger, and the temperature difference at the pinch point is selected as 6 degrees C. Its refrigeration depends mainly on both air and vapor, more efficient than a conventional air cycle, and the use of turbo-machinery makes this possible. This system could use the cool in the cool water, which could not be used to cool air directly. Also, the heat rejected from this system could be used to heat cool water to 3340 degrees C. The sensitivity analysis of COP to eta(c) and eta(t) and the simulated results T-4, T-7, T-8, q(1), q(2) and W-m of the cycle are given. The simulations show that the COP of this system depends mainly on T-7, eta(c), and eta(t) and varies with T-3 or T-wet and that this cycle is feasible in some regions, although the COP is sensitive to the efficiencies of the axial compressor and turbine. The optimum pressure ratio in this svstem could be lower, and this results in a fewer number of stages of the axial compressor. Adjusting the rotation speed of the axial compressor can easily control the pressure ratio, mass flow rate and the refrigerating capacity. The adoption of this cycle will make the air conditioned room more comfortable and reduce the initial investment cost because of the obtained very low temperature air. Humid air is a perfect working fluid for central air conditioning and no cost to the user. The system is more efficient because of using cool water to cool the air before the turbine. In addition, pinch technology is a good method to analyze the wet air heat exchange with water. (C) 2007 Elsevier Ltd. All rights reserved.