A method for refurbishing an existing expandable host pipe. An expansion tool is adapted to generate isolated outward radial force when in expansion mode. The expansion tool is moved along a path inside the host pipe, stopping at stations on the way. At each station, responsive to isolated outward radial force from the expansion tool, the unobstructed interior diameter of the host pipe is increased via non-destructive plastic deformation of the interior wall. Once the entire host pipe is expanded in this fashion, a new rigid liner pipe is inserted inside the host pipe to operationally replace the host pipe. Grout is deployed in the annular space between liner pipe and host pipe. Expansion of the host pipe via non-destructive plastic deformation optimizes the refurbishment job and enables the original host pipe, as expanded, to contribute structurally to the refurbished pipe system.