A new leak detection method is proposed here which is based on the cepstrum of the cross-correlation of the pressure signals from two transducers. Computational simulations of leaks with different properties, size, position and shape, in a straight pipe and a T-Junction network were studied. The proposed method was successful in estimating leakages and the pipeline features with a high precision. For the results with a straight pipe, this method is considerably more accurate than using the cross-correlation leak detection method or the cepstrum method alone. However, the results obtained by cepstrum and cepstrum of cross-correlation for the T-Junction case were quite accurate, while cepstrum alone showed a slightly better precision.