In tropical countries like India, irrigation is necessary to grow crops in the nonmonsoon period. The conventional methodology for conveying irrigation water from the source to the field is through open canals. However, considering huge losses due to evaporation and percolation, a modern system of irrigation like pipe irrigation network (PIN) is desired. Advancement in technology has led to the progress in the PIN as they are compatible with modern irrigation facilities such as sprinkler and drip irrigation systems. In the present study, the layout of the PIN is designed and optimized in two phases. Initially, the looped network is traced out for the Bakhari distributary of the Kanhan Branch Canal, India. Minimum spanning tree (MST) network is obtained from the looped network using Prim's algorithm to calculate the nodal demands. The layout optimization of the MST is carried out using the Steiner concept to obtain the initial Steiner tree (IST). The steady-state hydraulic analysis and design are carried out for the looped and IST network. The results show that the percentage of length decreasing from the looped network to the MST network is 51.58%. The IST network is the optimized network having the minimum length showing a 12.21% length reduction compared to the MST network. The total reduction in the cost of the Steiner tree is found to be 4.25% compared to the looped network. Steiner concept application to large irrigation networks can reduce the length of the network thereby minimizing the total project cost.