District heating networks offer promising solutions for remote communities, providing centralized heat supply, improved efficiency, and diverse energy sources, especially with existing diesel generation. Hence, this paper bridges gaps in the existing literature by developing comprehensive dynamic models of combined district heating networks within existing electric power networks in remote communities, which allows identifying challenges and benefits of district heating networks for these communities. It is shown that district heating networks allow utilizing waste energy to enable energy exchanges between the electricity and heating systems, enabling the provision of necessary ancillary services for remote microgrids with renewable energy sources. The presented dynamic district heating network model incorporates particular considerations in remote, northern communities such as soil limitations, extreme cold conditions, and piping insulation to minimize heat loss. It also addresses accurate sizing of heat pumps based on realistic thermal load requirements, weather conditions, and consumer profiles, proposing demand management controls to enhance frequency regulation for the integration of variable renewable energy sources. The main contributions of the paper include detailed dynamic modeling for district heating network operation, heat pump demand response control system design, and a comparative analysis between centralized district heating networks and decentralized electric thermal storage units that have been deployed for thermal supply in remote areas. The presented dynamic models are applied, tested, and validated in an existing electric microgrid at Kasabonika Lake First Nation in Northern Ontario, showcasing the role of a potential district heating network in facilitating renewable energy sources integration in isolated microgrids.