I am working on finding the overall network reliability of a municipal water supply pipe networks. So, i would like to know all the methods available in the literature.
It depends on the complexity of your network in terms of interconexionx , dependability... I think that Bayesian Networks may be a usefull tool for you.
What is your definition of reliability? Are you interested in predicting the likelihood and location of leaks? There have been a number of studies of failures and leaks in cross country pipelines mainly for oil and gas, both onshore and offshore ( see the OREDA database) , but the methodology is applicable to water pipes. You may have to get more water specific failure rate data from water companies. A good paper describing the approach that you can use is by my ex colleagues - www.icheme.org/~/media/Documents/Subject%20Groups/Safety_Loss_Prevention/Hazards%20Archive/XXI/XXI-Paper-044.pdf