A fund distribution model for water pipeline replacement at the level of limited fund is established.  By analyzing maintenance fee of pipe network and construction fee,  and decreasing the difference of pipeline maintenance fee before and after replacement at the most,  the pipeline needed to be replaced is determined.  The establishment of model makes construction fund be utilized fully,  and decreases pipeline leakage loss most effcfivedy,  and provides theoretical support and guidance for water supply department to utilize fund reasonably,  control leakage loss and production and marketing difference ratio effectively.