Researchers in China developed a shower wastewater-source heat pump (WSHP) coupled with an air-source heat pump (ASHP) to recover heat from shower wastewater and provide hot water in university dormitories. The system, consisting of a 200 kW WSHP, a 120 kW ASHP, a hot-water tank, and a wastewater tank, was tested for energy performance, life-cycle costs, and environmental impact. Dynamic simulations and comprehensive benefit analysis showed that the hybrid system has a stable monthly coefficient of performance (COP) of 3.4 to 4.1, offering significant life cycle cost advantages and reducing carbon dioxide emissions by 77.77% compared to an electric boiler and by 60.76% compared to a coal-fired boiler. The WSHP-ASHP system also maintains an economic advantage over a gas boiler under typical market conditions, making it a promising climate solution.