Water scarcity is envisioned word over due to increasing urbanization, population overgrowth and climate change. Billions of cubic meters of treated water are lost worldwide from water distribution networks through leakage, which often lead to discontinuous water supply, either because of limited raw water availability or because of water rationing. The water companies all over the world and specially in a developing country like Egypt faces a lot of challenges from poor strategic management, limited financial resources and operational management, unskilled staff, low funding priority, insufficient customer service orientation, political interference and low independent regulations. This study is aiming to reduce the amount of physical leakage from the domestic distribution networks through the application of assessment methodology of the International Water Association (IWA) for water balance assessments and the databases of performance indicators, After the analysis of the data and application of the Infrastructure Leakage Index (ILI) method, the results, the ILI of the DMA were found to be high in which indicates that the network is Poor, Tolerable and immediate actions have to be done, and a management plan has to be set in order to reduce the water losses in the future.