In the context of smart city, design and implementation of a smart water system deserves the utmost attention. At present, water loss in distribution networks is an issue of significant concern. Some countries lose as high as 35% of produced water through leakages in the distribution pipe-network. In UK, about 28% of produced water is lost through leakages in the distribution network in London and around 40% in Glasgow. As a part of the smart water system, sensing and detection of water loss and leakages in the distribution network in a sophisticated way is highly essential. The project aims to design, model and fabricate an in-pipe inspection robot to sense real-time flow conditions within a water pipe network and detect leakages so that they can be repaired within the shortest time possible. The robot will be designed to be easily controllable remotely and be accurate in sensing from any angle around the circumference of the pipes. It needs to be fitted with video capturing capability to detect leakages accurately by transmitting and analysing the data real-time in a ground station. The efficacy of the fabricated prototype will be tested in an in-house-built water pipe-network. Such a system, with some modification, is also expected to be suitable for inspecting the conditions of other pipe-networks such as gas and oil distribution systems.