Abstract: In this paper, a new fault location method for distribution system based on the directed graph is proposed to improve the fault locating efficiency of distribution network and reduce the losses caused by fault outage. By applying actuating signals of fault indicators received from master station, the bus branch incidence matrix and branch current vector are built, and they are multiplied to determine the location of faulted line sections. No need of normalization processing, proposed approach can locate fault position of complex distribution systems integrated with DGs and work in situation of multiple faults with close loop control, which has better fault tolerant capacity. In this paper, the correctness and applicability are proved by KCL theory, and the simulation on a city distribution system is carried out. The results show that proposed method can be used in practice, which has a great prospect in application.