Abstract Water distribution networks (WDNs) with other infrastructures constitute a complex and interdependent multi-utility system. Considering interdependencies between WDNs and other urban infrastructures, this work proposes WDN intervention planning using a dynamic multi-utility approach to tackle the challenges of pressure deficits and cascading failures by the decoupling of different infrastructure systems. For this purpose, the study develops reliability indices representing the hydraulic and decoupled statuses of WDNs with neighbor infrastructures; the hydraulic reliability represents the robustness of the network against the water pressure deficit, and decoupling reliability represents the extent to which WDN elements are decoupled from other assets elements. A multi-objective optimization algorithm is employed to develop rehabilitation strategies by introducing three approaches for WDN upgrade following a phased design and construction method. Evaluating intervention plans based on construction cost, reliability and cascade effects shows that, under budget limitation conditions, decoupling a WDN could significantly save the cascade cost such that 1% improvement in the decoupling reliability brings about 157.42 billion Rials cascade cost saving to asset managers. On the other hand, the decoupled network is weak against hydraulic reliability, which could make it by far less resilient network than the coupled network with around 75% hydraulic reliability difference.