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In recent years, complexity of fault diagnosis in the advanced distribution networks, mainly due to the increased use of distributed generations and fault with impedance result in proposing of adaptive fault location technique using neural network. Radial basis function neural networks are used for fault diagnosis and fault location. The proposed approach reduces the complexity of the fault location in case of impedance fault. The predicted results prove the effectiveness of the proposed online automatic procedure for fast and accurate fault diagnosis of the system for a wide range of system conditions.