The Minoan city of Knossos sported an advanced plumbing and sewer system sometime after 3000 BC. Here’s everything you wanted to know about the history of plumbing on Crete: http://www.theplumber.com/crete.html
However, the Sumerians, and Egyptians seem to have had some sort of hydrological systems in place between 6000 and 3000 BC, closer to 3000 BC. Everything I’ve read suggests that the first complex settlements arose between 3500 and 3000 BC in Sumer. So, I would guess Babylon had the earliest.
History of ancient plumbing and drainage: Fixed Link