This study presents an approach to leak detection of pipeline review in terms of theoretical analysis such as acoustics and hydromechanics that should be accompanied by explanation of leakage. The acoustic emission signals during leak from circular hole of different geometries were studied both analytically and experimentally. The relationships between acoustic parameters and fluid mechanical parameters also were derived analytically. A quadrupole aerodynamic model was applied for the analysis of leak from the circular hole. Computer simulation results demonstrate the effectiveness of the proposed approach. In addition, it was confirmed that the wavelet transform (WT) was an effective tool to determine source location. That is, arrival times of each frequency component needed in the velocity calculation could be determined from the peak of the magnitude of wavelet transform data on the time-frequency plane.