The optimal sensor placement for leak detection in a water supply network has been studied extensively. The previous studies usually assume that each node of the water distribution network has the same importance. However, this assumption does not consider the difference in the impact when a leak occurs at the different nodes on the water distribution network. When the number of sensors is limited, the detection of only leakage events that can cause serious consequences is usually prioritized. This study proposes a multi-objective optimization method for sensor placement while taking into consideration the differences in the risk of leakage for the different nodes. First, five types of risk-based leakage functions are obtained based on the impact on the water distribution network when a leakage occurs at each node. The pressure at the node drops, which causes the water demand and pipe pressure to decrease while the flow rate increases. The multi-objective optimization method is then used to obtain the Pareto front according to the various risk-based leakage functions. Finally, the multi-criteria decision analysis method is used to rank and cluster the Pareto fronts, the optimal solution for each cluster is obtained, and these solutions are compared and analyzed. This study contains a case study that is based on the example water distribution network model C-town. When the number of sensors is limited, a more reasonable optimal sensor placement scheme can be obtained by considering the different risk-based leakage functions of the nodes, with a smaller impact on the water distribution network when a leakage occurs. • A multi-objective optimization sensor placement for leak detection in water distribution system. • Five types of risk-based leakage functions are obtained based on the impact of each leakage. • The impacts of the leakage occurring at each node of the pipe network are compared.