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Abstract The mathematical model of heating substation, which is an important part of district heating system, is presented in this paper. The main components of district heating substation system, from the automatic control perspective, that are observed in this paper are heat exchanger and three-way valve. Presented mathematical model is developed so it could operate in real-time, since the crucial aspect of development, deployment and testing of new control techniques and optimization algorithms is their accurate validation on the real system. However, the accessibility to a real system is often not possible. Corresponding to this, an alternative is the existence of the correct mathematical model of a process, with the ability to operate in real-time. First, the presented mathematical model of district heating substation is decomposed to the simpler models of its main elements, in order to provide the analysis of the various parameters on the model performance through numerical simulation. Second, a real-time model is developed in LabVIEW software package and deployed on the embedded controller with a real-time processor as a three-layer application which enables data acquisition and communication with a programmable controller. [ABSTRACT FROM AUTHOR]