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This paper presents an approach for finding the optimal implementation of feeder reconfiguration in unbalanced loading distribution systems with the objective of power loss reduction. The optimization problem is subjected to system constraints consisting of load-point voltage limits, radial configuration format, no load-point interruption and feeder capability limits. The system power losses and bus voltages are solved by a three-phase power flow algorithm. The solution technique, developed based on Tabu search, is employed to search switch statuses for feeder reconfiguration under different unbalanced loading conditions. The performance of the developed methodology is demonstrated by a radial distribution system with 69 buses, 7 laterals and 5 tie-lines (looping branches). The study results show that the optimal on/off patterns of the switches can be identified which give the minimum power loss while respecting all the constraints.