The　pipe　group　divided　by　physical　attributes　often　includes　many　individual　pipes　that　are　scattered　over　a　large　geographical　area,　making　the　replacement　of　these　pipes　require　frequent　service　interruptions　and　additional　costs　due　to　the　scattered　delivery　of　repair　resources.　To　address　this　issue,　this　paper　proposes　a　framework　for　pipe　replacement　optimization　on　pipe　groups　divided　by　spatial　clustering,　aiming　to　reduce　the　number　of　scattered　individual　pipes　in　the　replacement　scheme.　The　proposed　framework　integrates　spatial　autocorrelation　analysis　for　spatial　clustering　of　pipe　groups　as　replacement　candidates,　the　pipe　failure　model　to　predict　potential　failures　of　pipe　groups,　and　the　replacement　optimization　model　of　pipe　groups.　The　optimization　model　aims　to　minimize　the　number　of　potential　failures　within　the　constraints　of　the　annual　budget.　The　framework　was　implemented　in　a　real　WDN　and　pipe　replacement　schemes　obtained　by　the　proposed　framework　are　compared　with　two　other　methods,　namely,　pipe　attribute　clustering-based　optimization　and　pipe　risk-based　ranking.　The　results　show　that　the　spatial　clustering-based　grouping　helps　reduce　the　number　of　spatially　scattered　individual　pipes　by　36.7　and　64.6%,　respectively,　compared　to　the　other　two　methods.　The　proposed　framework　is　expected　to　provide　more　cost-benefit　schemes　for　pipe　replacement.