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The paper presents a procedure for fault location in distribution network with only two-phase current transformers (TA), based on the use of the artificial neutral network (ANN). We constructed IA + IC as a new wave module to solve only two-phase current transformer which can not be zero sequence current situation, then traveling wave in the propagation characteristics of the bifurcation lines have been analyzed. Radiation network model is built and various fault conditions are simulated, the results showed: simulation results is consistent with analysis. Based on the theoretical analysis and simulation this paper selects the polarity of first three waves and their time difference as the input of artificial neutral network, fault zone detect first, fault distance locator next, then train and test the neutral network to establish fault diagnosis model. Using this model, fault zone and fault distance can be successfully identified. The model has been tested successfully on fault location in distribution networks with only two-phase current transformers.