Quantum annealing has emerged in the last few years as a promising quantum computing approach to solving large-scale combinatorial optimization problems. In this paper, we formulate the problem of correctly placing pressure sensors on a Water Distribution Network (WDN) as a combinatorial optimization problem in the form of a Quadratic Unconstrained Binary Optimization (QUBO) or Ising model. Optimal sensor placement is indeed key to detect and isolate fault events. We outline the QUBO and Ising formulations for the sensor placement problem starting from the network topology and few other features. We present a detailed procedure to solve the problem by minimizing its Hamiltonian using PyQUBO, an open-source Python Library. We then apply our methods to the case of a real Water Distribution Network. Both simulated annealing and a hybrid quantum-classical approach on a D-Wave machine are employed.