Smart sensor placement is a crucial aspect of designing efficient and effective monitoring systems across various industries, including manufacturing, healthcare, environmental monitoring, and smart cities. The strategic positioning of sensors ensures optimal data collection, accuracy, and coverage while minimizing redundancy and cost. It involves analyzing the environment, objectives of the monitoring system, and characteristics of the sensors themselves, such as their sensing range, resolution, and influence of environmental conditions on their performance. Advanced algorithms, including machine learning and optimization techniques, are often employed to determine the best locations for sensor installation. This not only enhances the quality of the collected data but also improves the system’s ability to detect anomalies, predict trends, and facilitate decision-making processes. Proper sensor placement is essential for maximizing the efficiency of data-driven operations and achieving a high return on investment in sensor technology. With this as an overall backdrop, this chapter aims to provide an industry overview of these methodologies as they pertain to drinking water utility operations – within which specific motivational and practical formulations will be covered as case studies, along with a more futuristic view of new applications that are emerging at the forefront and fusion of sensor technology advancement, hydroinformatics, and advanced analytics.