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Based on global positioning system (GPS) technology and differential equation algorithms, a new approach to live line measuring of the inductance parameters of transmission lines with mutual inductance is proposed. The principles and mathematical model of the new method are explained in detail. Data processing by least square algorithm is introduced. To take into account the influence of distributed capacitance of transmission lines, a modified mathematical model is introduced. The hardware structure of the measuring system is given and real-time digital simulator (RTDS) experimental results validate the accuracy of the test system. Finally, an example of live line measuring two 220-kV transmission lines with mutual inductances is given. A comparison of measurement results between the differential equation method and the conventional method is also shown.