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We detect the location of line outages inside a specific area of the power system from synchrophasor measurements at the border of the area and inside the area. We process the area synchrophasor measurements using a DC load flow model of the area. The processed measurements do not respond to line trips or power redispatches outside the area. The method extends previous methods that locate line trips in an entire network so that they work in a particular area and also deals with cases of islanding. The method will be particularly useful when utilities or ISOs in large interconnections restrict their attention to network models and phasor measurements for only their own area.