A method and system for optimization of a simplified engineering model is provided. A software tool efficiently simplifies an engineering model such as a water distribution system and preserves the hydraulic accuracy of the simplified model. The system includes a software program that employs a genetic algorithm to evolve solutions for reinstating the behavior of the original network into a simplified network. The genetic algorithm can be used for identifying the less sensitive hydraulic elements (links and nodes), and removing them or replacing them with the best-fit element parameters produced by the genetic algorithm module of the present invention. A element-by-element skeletonization approach generates the layout of a skeleton network and then identifies potential equivalent elements for replacing series pipes and loops. Yet another alternative includes taking a skeleton network model, and using the techniques of the present invention, optimizes the demand distribution and pipe conductance of the skeletonized model.