Considering the insufficiency of the present international study on the quantification of water pipeline leakage, and the deficiencies of the existing common methods of leakage calculation, this study combines Kalman filtering algorithm commonly used in the area of information control to build state equation and observation equation of pipeline leakage model. The simulation experiment of pipeline leakage calculation based on Kalman filtering algorithm conducted in the laboratory proved the feasibility of the model. Our study provides a powerful basis for policy-makings of water supply network management, leakage reduction, and improvement of leakage control level