A leak detection system using acoustic emission methods is developed. For this, an experimental rig to detect leak was built using 8” galvanized steel pipe. The length of the pipe is 2 meters. A leak was made with 3 mm diameter and located in 1 meter from the end pipe. The pipe was filled with water and compressed until certain pressure reached. An acoustic emission transducer from Brüel and Kjær type 8313 is mounted on the pipe wall and connected to digital oscilloscope to detect AE signal. The experiment conducted by placing a sensor at a distance of 15 cm, 30 cm, 45 cm, 60 cm, and 75 cm from the position of the leak. Measurements were also performed with the variation of the pressure 3 bar, 4 bars, 5 bars, 6 bars, and 7 bar for those points.Considering acoustic emission wave travelling on pipe is plane wave, leak detection using energy attenuation emission become possible that is different from the method commonly used. Propagation constant is thus required and obtained based on experimental result where the amplitude varies with the spatial and pressure. It is found that for the case considered here. Subsequently, distance of leak location can be determined by the propagation constant and the ratio of energy. Using this method, the error of prediction is about 15.8 %.