This article presents a new data-driven method for locating leaks in water distribution networks (WDNs). It is triggered after a leak has been detected in the WDN. The proposed approach is based on the use of inlet pressure and flow measurements, other pressure measurements available at some selected inner nodes of the WDN, and the topological information of the network. A reduced-order model structure is used to calculate non-leak pressure estimations at sensed inner nodes. Residuals are generated using the comparison between these estimations and leak pressure measurements. In a leak scenario, it is possible to determine the relative incidence of a leak in a node by using the network topology and what it means to correlate the probable leaking nodes with the available residual information. Topological information and residual information can be integrated into a likelihood index used to determine the most probable leak node in the WDN at a given instant k or, through applying the Bayes’ rule, in a time horizon. The likelihood index is based on a new incidence factor that considers the most probable path of water from reservoirs to pressure sensors and potential leak nodes. In addition, a pressure sensor validation method based on pressure residuals that allows the detection of sensor faults is proposed.