A parametric study of the effect of reference state on the energy and exergy efficiencies of geothermal district heating systems is presented. In this regard, the work consists of two parts: a modeling study covering energy and exergy analysis and a case study covering the actual system data taken from the Salihli Geothermal District Heating System (SGDHS) in Manisa, Turkey. General energy and exergy analysis of the geothermal district heating systems is introduced along with some thermodynamic performance evaluation parameters. This analysis is then applied to the SGDHS using actual thermodynamic data for its performance evaluation in terms of energy and exergy efficiencies. In addition, a parametric study on the effect of varying dead state properties on the energy and exergy efficiencies of the system that has been conducted to find optimum performance and operating conditions is explained. Two parametric expressions of energy and exergy efficiencies were developed as a function of the reference temperature. Both energy and exergy flow diagrams illustrate and compare results under different conditions. It has been observed that the exergy destructions in the system particularly take place as the exergy of the fluid lost in the heat exchanger, the natural direct discharge of the system ( pipeline losses), and the pumps, which account for 31.17%, 8.98%, and 4.27% of the total exergy input to the SGDHS, respectively. For the actual system that is presented, the system energy and exergy efficiencies vary between 0.53 and 0.73 and 0.58 and 0.59, respectively.