We have studied nuclear power plant for district heating. Already some towns and villages in Hokkaido have requested small reactor for district heating. Using existing technology allows us to shorten development period and to keep a lid on development cost. We decided to develop new reactor based on "MUTSU" reactor technology. "MUTSU" had already proved its safety. And "MUTSU" reactor was boron free reactor. It allows plant system to become more compact and simple. And load following capability by core reactivity become bigger. It means to reduce control rod movement It leads to dependability enhancement. We calculated burn-up calculation of erbium addition fuel. In the result the core life became about 10 years. In the district heating system, there are not only district heating but also snow melting with warm water. It uses steam condenser's heat, which are only discharged now. This small plant has passive safety system. It is natural cooling of containment vessel. In case of loss of coolant accident, decay heat can remove by natural convection air cooling after 6 hours. Decay heat within 6 hours can remove by evaporative heat transfer of pool on containment vessel.