Communication networks, both wired and wireless, are expected to have a certain level of fault-tolerance capability.These networks are also expected to ensure a graceful degradation in performance when some of the network components fail. Traditional studies on fault tolerance in communication networks, for the most part, make no assumptions regarding the location of node/link faults, i.e., the faulty nodes and links may be close to each other or far from each other. However, in many real life scenarios, there exists a strong spatial correlation among the faulty nodes and links. Such failures are often encountered in disaster situations, e.g., natural calamities or enemy attacks. In presence of such region-based faults, many of traditional network analysis and fault-tolerant metrics, that are valid under non-spatially correlated faults, are no longer applicable. To this effect, the main thrust of this research is design and analysis of robust networks in presence of such region-based faults. One important finding of this research is that if some prior knowledge is available on the maximum size of the region that might be affected due to a region-based fault, this piece of knowledge can be effectively utilized for resource efficient design of networks. It has been shown in this dissertation that in some scenarios, effective utilization of this knowledge may result in substantial saving is transmission power in wireless networks. In this dissertation, the impact of region-based faults on the connectivity of wireless networks has been studied and a new metric, region-based connectivity, is proposed to measure the fault-tolerance capability of a network. In addition, novel metrics, such as the region-based component decomposition number(RBCDN) and region-based largest component size(RBLCS) have been proposed to capture the network state, when a region-based fault disconnects the network. Finally, this dissertation presents efficient resource allocation techniques that ensure tolerance against region-based faults, in distributed file storage networks and data center networks.