This paper presents an alarm system for the integrated monitoring and control station of waterworks in Daegu City. An alarm system informs the operator or other responsible individuals about the abnormality in the process so that an appropriate action can be taken. In practice, operators receive far more false and nuisance alarms than valid and useful alarms. Too many false and nuisance alarms can distract the operator from operating the plant, and thus critical alarms may be ignored. This problem can lead to the point that the operator no longer trusts the alarms or even shuts down the whole monitoring system. This paper proposes an efficient method to reduce false and nuisance alarms by prioritizing every fault using the Fault Tree Analysis (FTA) technique. The effectiveness of the proposed method is evaluated with a set of computer simulation under various faulty conditions.