The optimal placement and operation of pressure control valves in water distribution networks is a challenging engineering problem. When formulated in a mathematical optimisation frame work, this problem results in a nonconvex mixed integer nonlinear program (MINLP), which has combinatorial computational complexity. As a result, the considered MINLP becomes particularly difficult to solve for large-scale looped operational networks. We extend and combine network model reduction techniques with the proposed optimisation framework in order to lower the computational burden and enable the optimal placement and operation of control valves in these complex water distribution networks. An outer approximation algorithm is used to solve the considered MINLPs on reduced hydraulic models. We demonstrate that the restriction of the considered optimisation problem on a reduced hydraulic model is not equivalent to solving the original larger MINLP, and its solution is therefore sub-optimal. Consequently, we investigate the trade-off between reducing computational complexity and the potential sub-optimality of the solutions that can be controlled with a parameter of the model reduction routine. The efficacy of the proposed method is evaluated using two large scale water distribution network models.