AbstractBudget distribution over water network segments is one of the challenges that face municipalities worldwide. Most water distribution networks (WDNs) are deteriorating, and thus they require urgent rehabilitation, which costs billions of dollars. Therefore, there is a need to develop a prioritization tool for allocating the budget to the inspected components and selecting the most suitable rehabilitation actions. The present research aims to develop a water network performance–based budget allocation (WNPBA) model to allocate budgets based on the performance assessment optimally. The WNPBA model utilizes Weibull distribution to predict the performance for the components, as well as both genetic algorithm (GA) and greedy heuristics (GH) to allocate the available funds optimally. The data required for this research were collected from experts in Montreal’s water services because the developed model was applied to a subnetwork from Montreal. The model’s recommended actions matched the city water services’ actions, utilizing the AQUAMODEX tool by almost 94%. The developed WNPBA has proven to be a promising tool in allocating budget to water networks. Data from a water subnetwork in Montreal were used to demonstrate the proposed model. Therefore, the model is useful for the decision-making process through any water municipality to facilitate the budget allocation process.