We took the lead after Deyna Castellanos tapped in a rebound after seeing her penalty saved, and we were in control for much of the game as we looked to round off pre-season with a win.
But Liverpool equalised in the closing stages, with Emma Koivisto heading home a corner to deny us the win and see us share the spoils with the Reds.
In a behind-closed-doors encounter at the Academy Stadium, City started firmly on the front foot, enjoying a majority of the possession from the off.
However, Liverpool's back five held firm in the opening stages, restricting our efforts on goal and blocking the passing lanes as we searched for Castellanos' runs in behind.
However, our chance came in the 16th minute as Castellanos broke into the penalty area before being brought down by Flaherty, leaving the referee with little choice but to point to the penalty spot.
Castellanos duly stepped up and though her original effort was saved by Laws, the ball fell back into her path and she struck it into the back of the net.
Following the goal, Liverpool went on the attack in search for an equaliser, but were denied on multiple occasions by the offside flag as our defence stayed organised to withstand their threat.
City had their chances to double their advantage, getting into good positions just outside the 18-yard box but couldn't quite find the final ball to trouble the Liverpool stopper.
Into the second-half, Gareth Taylor's side continued to be on top and came close to an eye-catching leveler when Laura Coombs picked up the ball from deep, striding forwards before taking a long-range strike at goal that forced Laws into a good save.
Another great chance fell our way when Mary Fowler found space on the left-hand side, picking out Angeldahl at the back post but the midfielder directed her header wide of the post.
A creative header from Julie Blakstad played Castellanos through on goal, beating the offside trap but the Venezuelan striker couldn't grab her second goal of the game, dragging a left-footed shot wide.
But we were made to pay for our missed chances as, with just over ten minutes to play, Liverpool equalised when a corner found Koivisto, who headed the ball past Sandy MacIver to draw the game for the visitors.
HOW WE LineD UP
Manchester City Women
Starting XI | MacIver, Casparij, Houghton, Kennedy, Ouahabi, Angeldahl, Coombs (Alexandri, 65'), Losada, Blakstad, Castellanos, Fowler.
Liverpool FC Women
Starting XI | Laws, Koivisto, Flaherty, Fahey, Campbell, Hinds, Kearns, Holland, Lawley, Van de Sanden, Stengel.
Next up for many of our players is the international break, with a number of our squad featuring for their respective countries.
In two weeks' time, the Women's Super League will get underway as we face Arsenal at the Academy Stadium on Sunday 11 September. Kick-off will be at 19:00 (UK).