Claudio Bravo started in place of the injured Ederson in the City goal, while the Reds welcomed back their famous front-three of Mohamed Salah, Roberto Firmino and Sadio Mane.
City began strongly and had claims for a penalty after two minutes rebuffed, leaving Liverpool to break clear and fire the opener with a rasping strike on the edge of the area from Fabinho.
Salah provided further damage to the visitors 12 minutes in when he connected with Andy Robertson’s square-field delivery to head beyond the reach of a grasping Bravo.
Sergio Aguero looked to take matters into his own hands when he cut inside to open up a curling drive on the near side of the area, but Alisson Becker palmed clear after 25 minutes.
Liverpool pushed for a third before halftime and after founding openings to do so, Firmino and Salah watched as Bravo thwarted their attempts.
The Citizens eventually succumbed to a third goal six minutes after halftime as Mane evaded his marker at the back post to head home a Jordan Henderson cross, with Bravo scrambling to parry.
In an attempt to shore up the result, Jurgen Klopp hauled James Milner off the bench on 61 minutes with Henderson sacrificed in place of the midfield cog.
The Reds allowed the visitors in though when Bernardo Silva fired home from inside the area following a cross from the left in the final 12 minutes.
Liverpool seized control as the dust settled to stretch their lead at the top of the standings to nine points ahead City and eight clear of second-place Leicester City.