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Abstract Leakage from water distribution networks (WDNs) is inevitable. Therefore, during design a WDN, engineers add a percentage of each nodal water demand as leakage discharge to total node demand. The amount of leakage depends on the pressure, which is not known at the design stage. Considering a constant percentage of node demand in lieu of its leakage makes the problem worse. In this study, the effect of leakage on the optimal WDN design was investigated by developing the matrix form of the gradient algorithm while accounting for leakage using the pressure-dependent model. Non-dominated genetic algorithm version II (NSGA-II) was used as the optimization engine with two objectives which includes minimizing the network construction cost and minimizing the total network pressure deficiency. Two well-known two- and three-loop WDNs in literature were studied. The results indicated that the pressure-dependent leakage varies between 12.9 and 29.44% of the node demand while the network construction cost stays the same if compared with the fixed percentage leakage model, and the construction cost would increase by 17–31%, if leakage is not accounted for. This is expected the optimized diameters and hydraulic characteristics of the networks being affected by the leakage calculation method.