We present a theoretical model for the distribution of polarization-entangled photon-pairs produced via spontaneous parametric down-conversion within a local-area fiber network. This model allows an entanglement distributor who plays the role of a service provider to determine the photon-pair generation rate giving highest two-photon interference fringe visibility for any pair of users, when given user-specific parameters. Usefulness of this model is illustrated in an example and confirmed in an experiment, where polarization-entangled photon-pairs are distributed over 82 km and 132 km of dispersion-managed optical fiber. Experimentally observed visibilities and entanglement fidelities are in good agreement with theoretically predicted values.