Water supply in Tirunelveli Corporation is not evenly distributed due to undulating terrain and increase in population density. A study was undertaken to suggest measures for improvement to the distribution system. The paper presents results of analysis carried out using computer package LOOP developed by World Bank and Bentley Systems, 2008, Water Gems for optimal design of distribution system including cost analysis and reorganization measures needed for the design year 2044. The analysis of zone-Ill of the distribution network indicates that existing pipes need to be rehabilitated to cater to the demand for the year 2044 and CI/AC/PVC pipes needs replacement for the year 2044. New pipelines are to be proposed to ensure the service standards of 135l pcd with minimum residual head of 7 m. The network analysis with rate analysis with aid of software LOOP developed by World Bank and Bentley Water Gem has been made and Bentley Water Gems is found to be extremely user friendly for addressing such systems with varying demand pattern, peak factors, pipe condition, water supply modes and design horizons. In additions it has graphical interface which facilitate analyses more effective and lesser time requires to reanalyse the network.