There is provided a method for detecting and locating leaks in a pipeline network in real-time. A flow model is provided that characterizes flow behavior for at least one of steady and unsteady states respectively corresponding to an absence and a presence of model leaks in the pipeline network, the flow model including a leaking factor k_L. A deterministic model is provided to evaluate at least one of a leak status and a no leak status relating to the pipeline network using deterministic criteria. The deterministic criteria is based on a Liapunov Stability Theory. A deviation matrix is constructed based on the flow model and the deterministic model to generate eigenvalues. A leak alarm is generated when at least one of the eigenvalues is less than a predetermined value.