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The increasing load on the transmission system requires a fast fault location for high reliability of the grid. New communication and synchronization techniques allow the development of advanced fault location methods especially two-terminal methods. The installation of powerful hardware e. g. DSP makes the implementation of complex algorithms using directly the samples of a fault record possible. The objective of this paper is the presentation of a new fault location method taking the places of transposing into account. Using an accurate signal modeling technique enables an algorithm in time domain without an erroneous transformation of the samples into frequency domain. A line model which considers the line sections according to the transposing scheme including the known places of transposing yield the fundamental equation for a new two-terminal algorithm. Moving a data window through the fault segment of a fault record allows a statistical analysis to obtain a reliable fault location. After presenting fault location results based on calculations without considering the places of transposing some results indicating the high quality of the proposed method are illustrated. Both an ideally transposed (symmetrical) as well as an inexactly transposed (unsymmetrical) line serve as simulation model. Furthermore investigations of the influence of uncertain line parameters and inexactly known places of transposing have been done.