 This paper proposes a new denoising method for pipeline leakage fault alarm and leak location based on variational mode decomposition, VMD. The method first screens out the intrinsic mode functions using the correlation coefficient. Then, it optimizes the VMD decomposition layers K using information entropy. Finally, the denoised signal is used to extract the inflection point of the negative pressure wave, which is then used to calculate the position of the leakage point. Experiments were conducted both in the lab and in real pipelines, demonstrating that the proposed method achieves higher accuracy than other methods. This article was authored by Zhu Jiang, Gang Huiguo, and Buxiang Lu.