Xabi Alonso opened the scoring with a 35 yard free kick. The Spaniard sent the free kick towards the back post, Dirk Kuyt was unable to get a touch on it but his leap fooled the Derby goalkeeper and the ball hit the back of the net.
Kuyt had a couple of excellent chances to make it 2-0 after some good wing play from Jermaine Pennant but on both occasions he failed to hit the target.
That was only a temporary reprieve for Derby however, as on the stroke of half time Alvaro Arbeloa ran onto Daniel Agger's defence splitting pass and picked out Ryan Babel on the edge of the box. Babel's dummy sent two Derby defenders sprawling and he was able to pick his spot for his first Liverpool goal.
The Reds raced out of the blocks at the start of the second half and almost made it 3-0 instantly. A good move found Alonso in space inside the area but he lifted his shot over the bar.
It was 3-0 moments later when Javier Mascherano slid in and dispossed the dithering Rob Malcolm. The ball ran to Fernando Torres who sped round two defenders and slotted home his first goal in front of the Kop.
The Reds then had a penalty shout when Jay McEvely slid two footed into subsitute Yossi Benayoun but the ball ran loose to Alonso on the edge of the area who made such a call unneccesary by slotting home his second and Liverpool's fourth.
Some good link up play between Torres and Kuyt set up the fifth. A neat bit of interplay between the two saw Kuyt race into the box. His shot was saved but subsitute Andriy Voronin was quickest to the rebound to score his first Anfield goal.
It was 6-0 two minutes later when Torres capitalised on an underhit back pass by Andy Todd to round the keeper and slot home his second and send the Reds to the top of the league.