A: Geothermal heat pumps can be installed in some urban and suburban areas if they utilize dedicated water systems not interconnected with the domestic water or sanitary systems.
Several houses, all the apartments in a building or an entire community could be looped into a network of ground water distribution and return, if conditions were right. In addition, vertical closed-loop systems can be installed in urban and suburban areas where the bore holes can be drilled in parking lots, open plazas, or even under the footprint of new buildings, if the bores are drilled and the loops installed before building construction begins. Open-loop, two-well systems can even be installed if land area is sufficient to permit proper well spacing, aquifer capacity is sufficient, and local regulations permit.
In short, it is technically feasible to use a geothermal heat pump in a city or a suburb. However, local government restrictions or local ground water or geologic conditions may limit its use, so be sure to check with your appropriate authorities.