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This paper discusses CARE-W, a computer based system for water network rehabilitation planning. It provides fundamental instruments for estimating the current and future condition of water networks, i.e. performance indicators, selecting and ranking of rehabilitation projects and longterm investment needs. The procedure for selection and ranking of projects is supported by tools for prediction of network failures and calculation of water supply reliability. CARE-W will be available as a commercial system in 2004. Includes 12 references, figures.