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A time domain fault location method by identifying line parameters using two-terminal data is proposed. The method does not need accurate values of parameters to be given. In the condition that the fault point voltage values calculated from data at both ends are identical, the line parameters can be identified, and, meanwhile, the fault distance can be determined, eliminating the errors of traditional fault location algorithms caused by the inaccurate given parameters. As the percentage fault distance is used, the influence of seasonal and sagging-induced change in line length is well overcome, thus enabling accurate and quick search for fault point through measurement of actual ground distance between poles and towers. Simulation results show the proposed method is feasible and has high accuracy of fault location and line parameter identification.