CURRENT SCORE: Man City 2-2 Liverpool
City took the lead in the 23rd minute through Edin Dzeko, who showed great anticipation to run into the box and turned home James Milner cross.
Liverpool however replied six minutes later, and it was former City player Daniel Sturridge who scored for the Reds as he fired in an unstooppable 25 yard shot which left Hart grasping at air.
The Reds then took the lead in the 73rd minute through captain Steven Gerrard, who volleyed in beautifully from 35 yards.
However, City replied five minutes later through Sergio Aguero, who capitalised on Pepe Reina's rash decision to come off his line and sent a looping shot into the back of the net.
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Starting XIs: Man City vs Liverpool
Man City: Hart, Zabaleta , Nastasic, Lescott, Clichy, Milner, Garcia, Barry, Silva, Dzeko, Aguero
Subs: Pantilimon, Rodwell, Kolarov, Sinclair, Nasri, Tevez, Maicon
Liverpool: Reina, Johnson, Enrique, Agger, Carragher, Lucas, Gerrard, Henderson, Downing, Suarez, Sturridge
Subs: Jones, Wisdom, Skrtel, Allen, Shelvey, Sterling, Borini
Meanwhile, Gareth Bale's superb strike earned Tottenham a 1-0 victory over 10-man West Brom at the Hawthorns - and closed the gap to third-placed Chelsea to one point in the Barclays Premier League.
The Wales international struck his 11th league goal of the campaign mid-way through the second half to end a run of three successive draws for Andre Villas-Boas' team.
Albion played the final 42 minutes with 10 men after defender Goran Popov was sent off for spitting in the direction of Spurs defender Kyle Walker.
Tottenham took full advantage of their numerical advantage to dominate the second period despite the loss of leading scorer Jermain Defoe with an ankle injury.
Sunday's Premier League Fixtures
West Brom 0-1 Tottenham
Manchester City vs Liverpool
Saturday's Premier League Results
Fulham 0-1 Manchester United
Reading 2-1 Sunderland
Everton 3-3 Aston Villa
Wigan 2-2 Southampton