Optimal routing of distribution networks can be attained by keeping the line power capacity limit to handle load requirements, acceptable voltage at customer loads, and the reliability indices such as SAIFI, SAIDI, CAIDI, and ASAI limits. This method is composed of optimal loss reduction and optimal reliability cost reduction. The former is solved relating to the conductor resistance of all alternative routes, and the latter is solved relating to the failure rate and duration of each alternative route. The routing considering optimal loss only and both optimal loss and optimal reliability cost are compared in this paper. The case studies with 10 and 24 bus distribution networks showed that reliability cost should be considered as well as loss reduction to achieve the optimal routing in the distribution networks.