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The paper presents several practical criteria for selecting the types, number, and optimal location of measuring equipment for collecting real time data with required accuracy for the state estimation as demanded by the SCADA systems used in the automation of distribution systems. It also suggests a method for detection and elimination of possible errors in the telemetric data. The algorithms presented are easy to implement computationally and guarantee the correct operation of state estimators within acceptable economic constraints. The application of the proposed algorithms is also illustrated by an example chosen from a real network.