1. A method for reducing uncertainty in a hydraulic model of a water distribution network due to uncertain parameters and faults in the water distribution network, the method comprising the steps of: (i) calculating an optimized placement of sensors throughout a given uncertain section of the water distribution network and moving one or more of the sensors to locations indicated by the optimal placement; (ii) collecting data from the sensors, and repeatedly moving the sensors and collecting data from the sensors until sensors have been placed and data has been collected from the locations indicated by the optimal placement; (iii) partitioning the given uncertain section of the water distribution network into observable and unobservable sub-sections based on the hydraulic model, and one or more of a) a position, b) a number, and a c) type of the sensors that are available; (iv) correcting uncertain parameters and identifying faults for each of the observable sub-sections; (v) calculating a global uncertainty value for each of the unobservable sub-sections; and (vi) repeating the steps (i)-(vi) iteratively, at each iteration selecting an uncertain sub-section of the water distribution network, until no uncertain sub-sections of the water distribution network remain, wherein during a first iteration the water distribution network as a whole is selected for analysis, and at each subsequent iteration sub-sections of the water distribution network are selected for analysis.