With increasing adoption of advanced meter infrastructure, smart sensors together with SCADA systems, it is imperative to develop novel data analytics and couple the results with hydraulic modeling to improve the quality and efficiency of water services. One important task is to timely detect and localize anomaly events, which may include, but not be limited to, pipe bursts and unauthorized water usages. In this paper, a comprehensive solution framework has been developed for anomaly detection and localization by formulating and integrating data-driven analytics with hydraulic model calibration. Data analysis for anomaly detection proceeds in multiple steps including the following: (1) data pre-processing to eliminate and correct erroneous data records, (2) outlier detection by statistical process control methods and deep machine learning, and (3) system anomaly classification by correlation analysis of multiple sensor events. Classified system anomaly events are subsequently localized via hydraulic model calibration. The integrated solution framework is developed as a user-friendly and effective software tool, tested, and validated on the selected target areas in Singapore.