The present-day water supply services use advanced technologies in order to provide their customers with constantly improving services. This involves the adoption of a pro-active approach to the operational management of distribution networks as a means of improving customer satisfaction. As a result, an analysis of the necessary changes in the network management and the operations, and their effects on customers, along with the reduction of operating costs and investments, was performed with optimisation tool called genetic algorithms. This paper presents work performed on a small but complex, water-suply system. The work comprised building a model, model calibration, and an analysis of the development perspectives to ensure the long-term coverage of customer neeeds, while taking into account the limited resources available. During the work some tools were developed, based predominantly on the EPANET software, which uses genetics algorithms as an optimisation procedure. This enabled an advanced analysis of the existing performance of the water-supply system as well as an analysis of the different development options.