As our underground network of sewers continues to deteriorate, the need for methods and models to identify and assess those sections requiring rehabilitation is more and more critical. Unfortunately, the area of sewer infrastructure management has traditionally been under-researched. Modern infrastructure systems are highly developed with considerable capital funding invested in them. While capital is spent on new infrastructure initiatives, the maintenance and renewal of the present infrastructure must not be neglected. Increasingly, public agencies are being urged to develop improved systematic strategies for setting priorities for optimizing sewer renewal keeping in mind fiscal responsibilities. This paper describes the factors used in setting priorities for a neighbourhood-based sewer renewal strategy employed by the City of Edmonton, Alberta. The two main factors used in developing a neighbourhood renewal strategy are: 1) sewer rehabilitation factors; and 2) neighbourhood prioritization factors. Sewer rehabilitation factors include; size, depth of cover, waste type, age, material, construction, slope, and location. Neighbourhood prioritization factors include; sewer deficiency, sewer separation, plan factors, and flooding frequency. These factors were weighted based on importance using a cross-disciplinary panel of experts and the Analytical Hierarchy Process (AHP). The rankings provided by the AHP analysis provide the framework for development of a model to assess and set priorities for a neighbourhood-based sewer renewal strategy. The results indicate that waste type and sewer deficiency are the most critical factors in sewer rehabilitation and neighbourhood prioritization, respectively.