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DG has great negative effects on conventional relay protection in distribution networks. Decentralized protection strategy is more profitable mechanism to contain shortages and to satisfied fault selectivity of power system. It is known that voltage measure is difficult in distributed system (DS). The paper proposed an innovative way to decide fault direction without voltage measurement and developed an intelligent adaptive fault location by isolating DS. This locating algorithm can greatly reduce protection information collection requirement because of artificial neural network (ANN) introduction. With ANN, it can classify relevant fault area more easily and fault clearance will be more quick and sensitive. Case studies have been shown to support algorithm advantages.