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This paper presents a framework to assist management with formulating a rationalbasis to decide whether to repair/rehabilitate/replace distribution systeminfrastructure. Water distribution systems characteristically have a long servicelife and comprise a major component of the utility's assets. The objective is toexpend dollars effectively. Recognition is given to the fact, that in many cases,there is no universally applicable criteria. The decision must be evaluated inthe context of the circumstances of a specific utility, and the resourcesavailable to that utility. The elements necessary to formulate the decision willbe presented which include an assessment of operation and maintenance records,developing operating and capital costs for each option, determining the most costeffective solution, and evaluating the available financial resources. Otherissues for discussion include the benefits of repair overreplacement/rehabilitation that allow for the opportunity to increase capacitythat result in extending the useful life or that improve the level of service. Includes figures.