It is essential to select the optimal pressure gauge location for effective management and maintenance of water distribution systems. This study proposes an objective and quantified standard for selecting the optimal pressure gauge location by defining the pressure change at other nodes as a result of demand change at a specific node using entropy theory. Two cases are considered in terms of demand change: that in which demand at all nodes shows peak load by using a peak factor and that comprising the demand change of the normal distribution whose average is the base demand. The actual pressure change pattern is determined by using the emitter function of EPANET to reflect the pressure that changes practically at each node. The optimal pressure gauge location is determined by prioritizing the node that processes the largest amount of information it gives to (giving entropy) and receives from (receiving entropy) the whole system according to the entropy standard. The suggested model is applied to one virtual and one real pipe network, and the optimal pressure gauge location combination is calculated by implementing the sensitivity analysis based on the study results. These analysis results support the following two conclusions. Firstly, the installation priority of the pressure gauge in water distribution networks can be determined with a more objective standard through the entropy theory. Secondly, the model can be used as an efficient decision-making guide for gauge installation in water distribution systems.