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Leakage detection in water distribution systems play an important role in storage and management of water resources. Therefore, to reduce water loss in these systems, a method should be introduced that reacts rapidly to such events and determines their occurrence time and location with the least possible error. In this study, in order to determine position and amount of leakage in distribution system, a detection method based on hydraulic model was evaluated using Extended Kalman Filter (EKF), which is a non-linear Kalman Filter. The results indicated that the method was well able to predict leakage position and its amount. Using a numerical model, a leakage was placed in 25.4 m distance of its upstream, amounting to 1.33 lit/sec which was equal to 10 percent of overall flow. The calculated mean position and leakage value by EKF were 27.17 m and 1.11 lit/sec, respectively.