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The water heater "source side" is placed on the demand side of the boiler loop. See example file 5ZoneWaterSystems.idf
There are some special control fields at the end of the object that may be used to coordinate the water heater and boiler operation. The Source Side Flow Control Mode specified when the water heater will place a demand on the boiler loop (or whatever the source is). And there is an optional Indirect Alternate Temperature Setpoint Schedule Name that allows the boiler to meet a different tank setpoint than the primary tank heating element setpoint.