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This study is concerned with the identification and utilisation of design solutions for improving the thermal environment of residential buildings in hot dry climates in general and the hot arid zone of Iran in particular. The influence of various energy conservation options on energy use in a prototype house has been analysed using the ESP dynamic computer simulation program. The research was aimed at providing a range of design guidelines for use in the process of building design by builders, architects and engineers. It also suggests programs relying on occupancy behaviour such as; thermostat settings or operating windows. The recommended design solutions are among those which can be obtained economically through the architectural application of commonly available construction materials and skills whilst also being appropriate in the socio-economic context in which the design and use of buildings take place. The effect of parameters such as; thermal mass and insulation, surface characteristics, orientation, window design, shading and environmental control strategies on the thermal performance of the prototype house has been investigated. Energy and comfort have been used as indicators of performance.