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This paper presents a modeling technique and an optimal control scheme for water distribution networks. To overcome the large scale and nonlinearity of the network, a network aggregation method and a two-level control scheme are developed. The first level of the scheme decides operating points using a nonlinear optimization method, where the pressure/flow equations are solved using a high-speed technique derived from network flow theory. The second level is a feedback control around the operating points, which absorbs estimate error and small variations in consumption. The scheme has been implemented on a minicomputer system and is presently in operation.