The building sector accounts for approximately 40% of total energy use in the European Union, with the majority stemming from space heating and domestic hot water systems. District heating (DH) systems offer a sustainable solution to meet these demands by efficiently using renewable energy, waste heat, and fossil fuels. However, peak loads significantly impact the operational and investment costs of DH systems, prompting the need for innovative solutions, such as thermal storage. In this study, a multi-storage system was developed and analyzed for a university campus DH network in Norway. This approach involved the installation of individual water tank thermal storage (WTTS) units in selected buildings to address heat demand fluctuations and optimize peak shaving. The system was modeled to evaluate the thermal and economic performance under varying conditions. The study prioritized the placement of WTTS units based on their economic benefits in reducing peak load-related costs and determined optimal storage capacities for each building. Results showed that integrating WTTS systems reduced peak load by 21%, saving 148,533 NOK (Currency ratio of €1 = NOK 11.50 (as of March 2025)) annually. With an initial investment of 868,000 NOK and a 3% interest rate, the payback period was estimated at 6.5 years, demonstrating the financial viability and effectiveness of WTTS in reducing energy costs.