Analyzing water system reliability is an important way to define the level of service that the water utility intends to provide its customers. In addition, it provides a basis for decisions regarding future expansions and improvements. This article presents an example a reliability analysis applied to a water delivery system and describes how the City of Boulder, Colorado, used this analysis to determine the need for and priority of water system improvements. For example, the City of Boulder determined that the potential failure of its older raw water pipes was the most serious threat to the reliability of the system; replacement of at least one of the pipelines became the highest-priority item for improving the water system. Also included is a definition of reliability criteria (the degree of service reliability demanded by the public) and how to establish them. Includes 3 references, tables, figure.