This uses the spatial analysis capabilities of GIS to assign geocoded (possessing coordinate data based on physical location, such as an x-y coordinate) customer meters to the nearest demand node or pipe. Assigning metered demands to nodes is a point-to-point demand allocation technique, meaning that known point demands (customer meters) are assigned to network demand points (demand nodes). Assigning metered demands to pipes is also a point-to-point assignment technique, since demands must still be assigned to node elements, but there is an additional step involved. When using the Nearest Pipe meter assignment strategy, the demands at a meter are assigned to the nearest pipe. From the pipe, the demand is then distributed to the nodes at the ends of the pipe by utilizing a distribution strategy. Meter assignment is the simplest technique in terms of required data, because there is no need for service polygons to be applied (see Figure below).

Meter assignment can prove less accurate than the more complex allocation strategies because the nearest node is determined by straight-line proximity between the demand node and the consumption meter. Piping routes are not considered, so the nearest demand node may not be the location from which the meter actually receives its flow. In addition, the actual location of the service meter may not be known.

The geographic location of the meter in the GIS is not necessarily the point from which water is taken from the system, but may be the centroid of the land parcel, the centroid of building footprint, or a point along the frontage of the building. Ideally, these meter points should be placed at the location of the tap, but the centroid of the building or land parcel may be all that is known about a customer account.