A new multiobjective formulation is proposed for the optimal design and rehabilitation of a water distribution network, with minimization of life cycle cost and maximization of performance as objectives. The life cycle cost is considered to comprise the initial cost of pipes, the cost of replacing old pipes with new ones, the cost of cleaning and lining existing pipes, the expected repair cost for pipe breaks, and the salvage value of the pipes that are replaced. The performance measure proposed in this study is a modification to the resilience index to suit application to water distribution networks with multiple sources. A new heuristic method is proposed to obtain the solution for the design and rehabilitation problem. This heuristic method involves selection of various design and rehabilitation alternatives in an iterative manner on the basis of the improvement in the network performance as compared to the change in the life cycle cost on implementation of the alternatives. The solutions obtained from the heuristic method are used as part of the initial population set of the multiobjective, nondominated sorting genetic algorithm (NSGA-II) in order to improve the search process. Using a sample water distribution network, the modified resilience index proposed is shown to be a good indicator of the uncertainty handling ability of the network. Copyright 2008 by the American Geophysical Union.