District Metered Area (DMA) construction is one of the most cost effective alternatives for management of water loss (i.e., water leakage) and energy consumption (i.e., water pressure) in water distribution systems. Therefore, it’s being implemented to numerous new and existing water distribution systems worldwide. However, due to the complexity of water distribution systems, especially large-scale and highly looped systems, it is still very difficult to define the optimal boundary of DMAs considering all the aspects of water distribution system management requirements. In this study, a DMA design methodology (or a DMA design model) was developed with Geographic Information Systems (GIS) and hydraulic distribution system model to determine the optimal DMA boundary.