Scott Rogers’ side moved level on points with third-placed Reading, and Arsenal one spot further back, by virtue of the result at the Swansway Chester Stadium.
The Reds capitalised on an encouraging start to a contest with connotations for the top and middle of the division by notching its only goal through England with just 10 minutes on the clock.
Alex Greenwood’s short corner routine with Caroline Weir opened up the chance to trouble City with a cross from the left side and the determined Liverpool striker was first to the ball with a clinical header at the near post.
Rogers’ team continued to create chances throughout the first half while successfully restricting the visitors, who are the WSL’s top scorers this term.
And there was no alteration to the scoresheet after the interval, meaning three crucial points for the Reds and a blow to City’s title ambitions, with unbeaten Chelsea now in the driving seat.
Next up for the Ladies is a trip to Reading and an important clash at the Madejski Stadium this Saturday afternoon.
Liverpool Ladies: Chamberlain, Murray, Bonner, Ingle, Harris, Longhurst (Rodgers, 81), Coombs, Weir, Greenwood, Charles (Johnson, 71), England.
Unused substitutes: Flaherty, Babajide.