###### Abstract  
This study introduces a method that can evaluate the efficiency of leakage management practices and devises a formula to set leakage management goals. To develop the evaluation method for deriving leakage reduction factors, real data from small- and medium-sized cities in South Korea were collected. With the data collected, four leakage management factors (or activities) that could improve revenue water ratio or reduce leakage ratio were identified. With the leakage management factors, correlation analysis was carried out to identify the relationship between independent and dependent variables and within independent variables. Once the relationships were identified, standardization of the data using T-score conversion was carried out to scale all data with different units into similar ranges. Finally, the efficiency of leakage management actions was determined by the formulation of leakage using various data analysis approaches using multiple linear regression analysis and deep neural networks. As a result, pipe replacement was determined as an essential activity to decrease the leakage ratio or increase the revenue water ratio. In addition, annual water loss management actions of the small cities were more actively performed. Furthermore, the performance of data analysis using DNN is more appropriate in data classification, considering the characteristics of time series rather than independent data analysis. Through comparison of the above data classification approaches, the increase or decrease in the leakage ratio/revenue water ratio by the water loss management activity of local water distribution systems can be used to construct a more effective model for classification considering both local and temporal characteristics. water distribution system; leakage management; correlation analysis; revenue water ratio; multiple regression analysis; deep neural network +
Footnote †: journal: Applied  
revenue water ratio is used as an indicator to evaluate the efficiency of business performance and operational management. Since 2004, in small and medium cities in South Korea, 22 cities have begun evaluating the project planning and operation process to solve the aging problem and improve the operational efficiency of WDSs. In addition, in this regard, the revenue water ratio was used to evaluate each project. The revenue water ratio is an indicator used to evaluate the performance of waterworks projects, and because there are no other quantitative indicators other than the revenue water ratio, there is no choice but to use the revenue water ratio as a future project goal. The revenue water ratio is a factor that evaluates the performance of WDSs, and in order to improve their performance, the revenue water ratio should be improved. The representative approach to improve the revenue water ratio is to manage effective water systems and reduce ineffective ones (i.e., leakage). As mentioned earlier, the revenue water ratio is the ratio of the total water supply to the effective water quantity; to increase the revenue water ratio, there are ways to increase the quantity of effective water systems or decrease the quantity of ineffective ones. First, one effective water management approach to improve the revenue water ratio is to accurately manage the amount produced by the water treatment plant's so-called supply management. For efficient supply management, it is necessary to determine the exact production water volume through regular inspection and replacement of the flow meter, and there is also a method to efficiently increase the supply amount by improving the supply system. Second, as an effective water management method, an accurate fee should be charged through an accurate meter reading. This method involves regularly checking and replacing old water meters in order to obtain more accurate meter readings, and to reduce reading errors through accurate meter reading by meter-reading personnel. Such accurate meter reading is a way to reduce the amount of water loss by preventing the illegal use of water.