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This paper discusses the Minimum Expected Economic Loss model which provides a framework for analyzing the repair and replacement of deteriorating cast iron water mains in a water distribution system. The segment level analysis determines the break number after which replacement of the segment results in the minimum economic loss. This determination is based on break histories, repair costs, replacement costs, and choices for discount rate and for the maximum number of breaks before a water main is deemed eligible for replacement. The network level analysis uses these results to forecast replacement funding needs. Choices for replacement funding strategies and backlog priorities are applied at the network level to develop a plan for dealing with any backlog. The result is a long-term forecast of expenditures on replacement, expenditures on emergency repairs, and outcomes for customers. The model is used to analyze five options in terms of outcomes for customers versus costs to consumers. Includes 4 references, table, figures.