Buoyancy-driven heat transfer, due to a square-shaped heater placed inside a square cavity filled with TiO2-water nanofluid, is investigated numerically. The heater is maintained at a constant temperature, T-h, while the cavity walls are kept at a lower constant temperature, T-c The governing equations are solved using the finite volume method and the SIMPLER algorithm. The simulations are performed for six different positions of the heat source inside the cavity, a range of Rayleigh numbers from 10(3) to 10(6), and different volume fractions of the nanoparticles. The ratio of the height (width) of the heat source to that of the cavity is taken as 0.2. The results shows that the fluid flow and heat transfer characteristics inside the cavity strongly depend on the location of the heat source. For Ra = 10(3), i.e. a conduction-dominated heat transfer regime, maximum heat transfer rate is achieved by placing the heat source close to the corners of the cavity, while, for Ra = 106, positioning the heat source near the middle of the cavity's bottom wall yields the maximum average Nusselt number. Moreover, it is observed that the average Nusselt number is generally an increasing function of the volume fraction of the nanoparticles. (C) 2014 Sharif University of Technology. All rights reserved.