Heat-traced utility corridors (utilidors) can be used in cold regions to install the drinking water and sewer pipes in a shallow trench above the frost depth, thereby limiting excavation needs and the associated economic, social, and environmental costs. Several of these infrastructures were built in the 60s and 70s in Canada, Alaska, Russia, and Norway. More recently, a new type of heat-traced utilidor was built as a pilot project in Kiruna, Sweden to increase the viability of district heating in the area by allowing co-location of all the utility pipes in a shallow trench. Despite several reported cases of undesirably warm drinking water from full-scale projects, previous research efforts on heat-traced utilidors have mainly focused on pipe freeze protection, not on the prevention of excessive temperatures of the drinking water. To ensure comfortable drinking water in terms of taste and smell, an upper temperature limit of 15 °C is usually recommended. The objective of this study was to evaluate the long-term ability of a heat-traced utilidor to maintain sewer temperatures above 0 °C and drinking water temperatures between 0 and 15 °C. Pipe temperatures were measured continuously at two cross sections of a heat-traced utilidor located in Northern Sweden over a period of 22 months. A thermal model, set up and calibrated on the measurements, was used to simulate the impact of extraordinary cold weather conditions on the pipes’ temperatures. The results showed that the utilidor could keep the pipe temperatures within the desired ranges in most cases but that special care should be taken during design to limit drinking water temperatures during the summer.