The traditional fault location system has some problems, for example, insufficient sampling rate result in not trigging on DC line when fault happens, can’t support distributed installation and communication protocol conform to IEC61850 standard in smart substation, and the data can’t be shared between different manufacturers. A new type of fault location system based on Qnet protocol is introduced. The new fault location system has extreme high sampling rate, saves the fault data using comtrade style and accords with the IEC61850 standard, so the data can be easily shared. It is proved through test that the fault location precision is improved largely by using the multi-scale analysis algorithm.