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Prompt and accurate location of faults in a large- scale transmission system can accelerate system restoration, reduce outage time, and improve system reliability. Traditional approaches are categorized into traveling-wave-based and impedance-based measurement techniques. The traveling-wave-based approach requires detection devices to connect to the high-voltage transmission line, making the solution complex and costly. And the impedance-measurement-based approach is highly dependent on the quality of the signal and affected by fault resistance, ground resistance and non-homogeneity in line configuration. Hence, these approaches may cause a location error that is unacceptable in certain operation cases. In this paper, a novel approach based on noncontact magnetic-field measurement is proposed. With the magnetic field measured along the transmission line by using highly sensitive, broadband, and a low-cost magnetoresistive magnetic sensor, the fault span can be located. The collected data can be further used for identifying the fault type and location within the fault span. The overall system was designed and numerical simulations were performed on typical tower configurations. The simulated results verify the validity of the proposed scheme.