Conductivity is the conductance of unit volume of solution. It is directly proportional to the number of ions present in unit volume of solution. When a solution is diluted, the degree of dissociation of acetic acid increases and the total number of current carrying ions increases, but the number of ions per unit volume decreases. This is because the increase in the number of ions is not proportional to the decrease in the concentration. Hence, conductivity of CH3COOH decreases on dilution.