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This paper presents a new valve positioning algorithm (VPA) for water network pressure reduction. The proposed algorithm is a graph theory-based algorithm combined with EPANET2.2 to position pressure-reducing valves (PRVs) at the most effective locations, having the most effect on downstream pressure reduction, and then calculates the setpoint for locally controlled valves. Each algorithm solution positions one valve on the edge with the highest-pressure reduction indicator calculated using the depth-first search algorithm. The setpoint is then calculated according to downstream pressure differences to the minimum service pressure to be supplied. The PRV location and setpoint found by the algorithm may be used to install and set locally controlled PRVs or serve as a guide for positioning remote-controlled PRVs. The algorithm is demonstrated on a simple example network using demand-driven analysis (DDA), pressure-driven analysis (PDA), and genetic algorithms (GA) and on a medium and a large example application (DDA). Any number of PRVs may be installed using the algorithm, which returns stable results and very short solution times while maintaining minimum service pressure requirements to the critical consumers. [ABSTRACT FROM AUTHOR]