In order to reduce the communication pressure and improve the power supply reliability, a distributed intelligent fault location method for small current grounding is presented. The method based on that the similarity degree of the transient current signals is low on both sides of the fault point, but that of the same side is high. It collects failure information by the terminal of the distribution automation system, and exchanges the fault information between the adjacent terminal unit feeder by the peer to peer communication network. Then the transient zero sequence current similarity coefficient is calculated and the fault section is determined by the feeder terminal; and the final result of fault location is reported to the master station. The method is completed by the feeder terminal, which does not require the participation of the master station; it have wide adaptability, the fault section location speed is fast, and the communication pressure is small, thus the reliability of power supply can be significantly improved. The feasibility of the distributed intelligent fault location is verified by the ATP simulation. And making ATP simulation experiment, it turns out that this fault location method is effective and feasible. This work is supported by Science and Technology Project of the State Grid Corporation of China (No. 52130416000D).