In this study, a numerical simulation using inverse pipeline analysis is conducted for the localization and quantification of leak using minimum number of measurement points of a leaky pipeline. The friction coefficient and leak cross section area were also identified by window marching technique using only the pressure head at one end of the pipeline and the flow rate measurements at the other end of the pipeline. The Monte Carlo simulation approach is applied to identify the pipeline parameters by minimizing an objective function that represents the mismatch between the measured and numerically modeled pipeline variables. The simulation results are able to identify and localize the leak location as well as the friction coefficient and leak across section area. The effect of additive measurement noise on the leak localization accuracy is also investigated.