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According to the characteristic of wavelet packet transformation and chaotic neural networks, this paper proposed a new method of discriminating fault line for single-phase ground in distribution system based on the wavelet packet transformation and chaotic neural networks. The wavelet packet chaotic neural networks trained by the post fault zero sequence current and zero sequence voltage are used to discriminate the fault line. This method is suitable for any distribution system, not influenced by load problem of the traditional methods that select fault line incorrectly. The EMTP shows that the proposed method is accurate and reliable, and has great application potential.