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Digital fault location scheme is presented based on the transient analysis of a faulted network. The theoretical basis is first described using the Laplace transform technique, and an attempt is made to clear its relation to the Fourier transform scheme. With the theoretical fault data, location performances are analyzed regard to system characteristics. Finally, the study is extended to determine the optimal operator value for numerical Laplace transform. The proposed scheme will be suitable for implementation at an integrated digital protection and control system for transmission substations.