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The distribution system is a major capital investment, and utilities must ensure they are getting the highest yield possible on that investment, both in terms of dollars and water quality. Knowing when pipe failure is likely to occur, determining the frequency of repairs, or being able to predict subsequent failures give utilities additional leverage to tip the economic scales in their favor. Combining cost-modeling analysis techniques with those of proportional-hazards models can allow utility personnel to cost-effectively plan for infrastructure needs on a systemwide basis. Includes 14 references, tables, figures.