Burst or leakage in drinkable water distribution system has occurred frequently in recent years, causing severe damages, economic loss, and long-lasting society impact. A viable solution is to use agile inline mobile sensors to detect and so as to mitigate the burst or leakage. Distinguishing from online fixed sensors, mobile sensors can swim freely along the piles in water distribution network, thus giving a more precise detection. To combat the low power, low computation, and low communication capability of mobile sensors, the newly emerged fog computing provides a promising means to gather and preprocess the sensing data. In practice, due to the budget limitation, we can deploy a limited number of sensors and fog nodes in the system. This introduces a challenging problem on how to deploy them in the system, ie, sensor and fog node placement. We first formulate mobile sensor placement (MSP) as a path cover problem and prove it as NP-complete, and then we propose a customized genetic algorithm and a mixed greedy algorithm to solve MSP and fog node placement, respectively. The correctness and efficiency of the proposed algorithm are illustrated by a comprehensive experiment. Moreover, some critical factors, eg, sensor battery lifetime and movement pattern, are all extensively investigated and the results show the coverage ratio is sensitive to these factors.