ABSTRACT Domestic water Distribution system is a major asset of a water utility and it designed to deliver water from a source to individual consumers in a utility’s service area. Currently Dire Dawa water supply and sewerage enterprise are responsible for supplying and managing water for people of the city. However, the organization has no well- designed Geodatabase for the existing water pipelines infrastructure, which stores both spatial and non-spatial information of the water utilities. Nowadays, GIS had led to overcome to solve such problems if used in managing water infrastructure. Therefore, the objective of this study was to solve poor asset management system of water pipeline infrastructure for Dire Dawa City Sabiyan 02 Kebele. The study was started through identifying requirement analysis that meets the need of the enterprise and customers. Geometric network was developed in geodatabase through connectivity rule to test the efficiency of the model by using different scenarios such as valve isolation and maintenance scenarios and identify water pipeline configuration networks. The output result of such scenarios were performed in the developed geometric network model, the tracing analysis result is showed that the developed model is identified valve to be closed in the network if leakage is occurred and also the affected customers result showed that due to valve closure. In addition, the output result of the maintenance scenario is showed the detail information of the pipe which needs immediate maintenance due to leakage or breakages and materials which needs annual maintenance on the basis of their service year. Additionally, gross water meter was established to control illegal usage of water or unmetered users of water in the city. Therefore, fuzzy overlay analysis was performed to select the appropriate place of growth water meter in the prototype area. The output result showed that, the selected suitable site is appropriate to place Gross water meter that meets the need of the organization and customers. Generally the developed geometric network model is efficient and effective to manage the water utility infrastructural assets.