In this study, we investigated the modelling and optimization of drinking water supply system reliability in the village of Zaben, Czech Republic. An in depth overview of the water supply network in the municipality, passport processing and accident and malfunction recording is provided based on data provided by the owner and operator of the water mains as well as the data collected by our own field survey. Using the data processed from accident and failure reports in addition to water main documentation, the water supply network in Zaben was evaluated according to the failure modes and effects analysis methods. Subsequently, individual water supply lines were classified based on their structural condition. In addition, a proposed plan for financing the reconstruction of the water supply mains in Zaben was created. As such, this study provides an overall assessment of the water supply network in Zaben alongside a proposed plan for the structural restoration of the water supply system, which accounts for the theoretical service life of the system and the financial resources of the owner.