Water leakages in distribution systems offer significant challenges, resulting in water loss, infrastructure damage, and environmental hazards. As urban populations grow and water resources become scarcer, water management systems’ efficiency becomes increasingly important. Traditional leak detection methods are inadequate and labour-intensive, making them unsuitable for large-scale infrastructure. In addition, limitations in the data representing pipes of varying diameters and materials under various leak scenarios leads to complexity in automatic water leak detection and localization. In response to this challenge, this research effort combines Computational Fluid Dynamics (CFD) and Deep Learning (DL) to enhance leak detection and localization. The study simulates water flow in pipes of varying diameters and materials under various leak scenarios using CFD. Consequentially deep learning models like the Bi-Layered ReLU Encoder + Softmax and Tri-Layered ReLU Encoder + Softmax are trained and tested. The results indicate improvements in detection accuracy by 2.4% and localization by 5.6%, highlighting the potential of this hybrid approach to enhance the reliability and efficiency of water management systems, ultimately promoting water conservation and reducing infrastructure damage.