Balancing valves are used in direct return systems to ensure that the flow rate at each fan coil unit or air handler is consistent, despite the varying lengths of the water circuit. These valves regulate the flow rate by creating a pressure drop, which helps to balance the flow across different branches of the piping system. By installing balancing valves, HVAC designers and engineers can ensure that each fan coil unit or air handler receives the required flow rate, regardless of its distance from the pump.