An appropriate subsystem configuration is a prerequisite for a successful distributed control/state estimation design. Existing subsystem decomposition methods are not designed to handle simultaneous distributed estimation and control. In this article, we address the problem of subsystem decomposition of general nonlinear process networks for simultaneous distributed state estimation and distributed control based on community structure detection. A systematic procedure based on modularity is proposed. A fast folding algorithm that approximately maximizes the modularity is used in the proposed procedure to find candidate subsystem configurations. Two chemical process examples of different complexities are used to illustrate the effectiveness and applicability of the proposed approach. (c) 2018 American Institute of Chemical Engineers