To test the effectiveness of the detection and positioning technology of the pipe leakage, the propagation law of pipeline leakage signal is studied in this paper, and a pipeline leakage signal simulation and generation system is proposed. It can simulate the leakage pressure wave signals at different positions of the pipeline. Changing pipe’s parameters though the computer, the simulation and output of the leakage signal under various working conditions can be realized. It can test the reliability and accuracy of the detection and location technology of the pipe leakage, and verify the applicability of the pipe leakage detection and location technology to different pipe structures. The results show that the output signal of system can replace the real signal, and located the pre-set leakage point by cross-correlation method. The purpose of studying the effectiveness and accuracy of the existing leak location algorithm base on largescale complex pipe network system in laboratory conditions was realized.