Concern with global climate change has led to the interest in the use of natural refrigerants, such as carbon dioxide, as replacements in heat pump systems. When operating in a transcritical cycle, carbon dioxide heat pumps are well suited for use in high temperature water heating heat pumps. In this work, four systems are analyzed: with and without the use of a suction line heat exchanger, and two water heating schemes. These two schemes involve the heating of water to its desired temperature at a low water flow rate in a single pass through the heat pump, and the heating of water at a high water flow rate, but requiring multiple passes. The performance and resulting heat exchanger size of these four systems is analyzed through the development of an overall system model. This system model uses component-level models that were developed based upon heat exchanger geometry and subsequently validated through experimental testing on a test facility developed for this purpose.