The global water issue is caused by a number of factors, including extreme weather, population increase, and industrial activity. One of the reasons we're running out of water as a planet is because of the outdated take-make-use-throw-away linear paradigm of handling water. It has been suggested that the circular economy may help alleviate water shortages by inspiring a fundamental change in municipal water infrastructure. Reduced consumption, recovered natural resources, and minimal waste are the three pillars of a circular water supply. A dispersed water supply is more adaptable and robust than a centralized one because it gives communities more time to be ready for emergencies. Nonetheless, there have been no extensive studies of the most important elements that influence the choice to build distributed water supplies. In order to better inform the planning process, this research seeks to identify critical selection factors that influence the evaluation of viable choices. This study proposed the triangular neutrosophic set with the Decision-Making Trial and Evaluation Laboratory (DEMATEL) method to compute the weights of criteria. The neutrosophic set is used to deal with uncertain data.