In this paper an optimal sensor placement strategy based on pressure sensitivity matrix analysis and an exhaustive search strategy that maximizes some diagnosis specifications for a water distribution network is presented. An average worst leak expansion distance as a new leak location performance measure has been proposed. This metric is later used to assess the leak location uncertainty provided by a sensor configuration. The method is combined with a clustering technique in order to reduce the size and the complexity of the sensor placement problem. The strategy is successfully applied to determine the location of a set of pressure sensors in a district metered area in the Barcelona water distribution network. Peer Reviewed