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The neutral grounding through a resistance has been wildly used in power distribution system in China. In the paper, the selection method and principle for grounding resistance and grounding transformer are elaborated after the connective modes and characteristics of the grounding resistance are introduced for power distribution system. Combining with the typical network structure of power distribution system, some examples are given and listed. The simulation by EMTP verifies the effectiveness of the method. This will be a very good theoretical basis on the grounding resistance selection, system design and practical application for power distribution system.