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The detection of small current grounding fault line based on Wavelet transform technique and the neural network technique was presented. According of the distribution of energy of each line in the system of grounding, the extraction of feature vectors by use of wavelet multi-resolution analysis and the decision of fault line based on neural networks are described. This strategy overcome the defects of conventional identify method, because of both information of transient state and steady state was used. The experimental result has shown that the implementation based on wavelet and neural network to detect the small current grounding fault line was available.