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A new Algorithm to locate fault on a three phase transmission line is proposed in this paper. To locate fault on any point on the transmission line, the proposed method first measures synchronized voltage and current from both line terminals. The positive sequence components of the pre-fault and the post-fault phasors, positive sequence source impedances at both terminals are also calculated. Using these source impedances and the line data, the positive sequence bus impedance matrix (Zbus) is formed. Fault location is obtained by using impedance matrix. This algorithm is tested extensively with data obtained from the MATLAB simulation of a long transmission line simulated with distributed parameters in the presence of fault resistance and fault inception angle. The simulation results show that the method is quite accurate and robust.