A novel steady-state network simulation model that fully integrates, into a classical hydraulic representation, pressure-driven demand and leakage at the pipe level is developed and presented here. After presenting a brief literature review about leakage modelling, the importance of a more realistic simulation model allowing for leakage analysis is demonstrated. Then, the algorithm is tested from a numerical standpoint and subjected to a convergence analysis. These analyses are performed on a case study involving two networks derived from real systems. Experimentally observed convergence/error statistics demonstrate the high robustness of the proposed pressure-driven demand and leakage simulation model.