Abstract: A system for heating, cooling, and ventilating a structure having exterior zones adjacent exterior walls and interior zones adjacent the exterior zones and opposite the exterior walls. The system includes for each pair of exterior and interior zones a first terminal unit for moving air from the interior zone to the exterior zone and a second terminal unit for moving air from the exterior zone to the interior zone. The first unit includes structure for selectively heating and cooling the air moved. The second unit includes structure for selectively cooling the air moved. The terminal units further include a casing defining an inlet and an outlet, fan structure for moving recirculation air through the casing from the inlet to the outlet, and structure for introducing primary air into the casing upstream of the fan structure so that primary air is induced into the recirculation air. Also disclosed is a method of heating, cooling, and ventilating a structure using the system disclosed.