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Increasing demand of electric-power reliability in industrial parks or in urban areas has led to the development of closed-loop distribution power systems. The harmonic resonance between power-factor-correction capacitors and system inductors may cause significant voltage distortion along the feeder. This paper proposes a discrete frequency-tuning active filter installed at the middle point of a closed-loop line for harmonic-resonance suppression. The active filter operates as a variable conductance for individual harmonic frequency according to the corresponding harmonic-voltage distortion. This algorithm allows the damping conductance of each harmonic frequency to be separately and autonomously adjusted in response to variation of both harmonic sources and resonant capacitors. Therefore, the unintentional “whack-a-mole” phenomenon, due to mismatching between the active filter and the line, can be avoided even if the active-filter location deviates from the middle point. Voltage distortion throughout the closed-loop line can be definitely maintained below an allowable level with lower peak current and lower rms current compared to the conventional voltage-detection active filter. Computer simulations based on a 11.4 kV/15 MVA system and a scaled-down platform in the laboratory are developed to validate the effectiveness of the proposed approach.