A typical system consists of an outdoor unit (comprising one or multiple compressors), several indoor units (often and mistakenly called "fan coils"), refrigerant piping, running from the outdoor to all indoors, using copper distributors in pipes and communication wiring.

Communication wiring consists of a 2 wired cable, chained from the outdoor to all indoors, creating an internal closed loop network, that is an essential part of any VRF installation.

As for the Control, each indoor is controlled by its own wired control panel, while there are some possibilities for wireless remotes (IR) and centralized controllers, enabling controlling all indoors from one location.