Abstract: Systems and methods to identify a rehabilitation policy for water pipe networks are provided. A graph is built to represent a water pipe network including edges for each pipe and nodes for each water source or water user. An approach based on proximity analysis is used to determine the criticality of each node in the graph based on the spatial distribution of water demand type in the neighborhood where the node is located. The spatial variabilities of demand criticalities along with the spatial variabilities of the seismic ground motion intensities are integrated into the formulation of an optimization problem to identify rehabilitation policies the water supply network. A purpose-built simulated annealing algorithm is then used to solve the optimization problem. Results of the optimization may then be used to identify pipes in the water pipe network to replace based on a replacement budget.