In urban distribution network, in order to narrow the scope of power construction and be convenient to scheduling, more ring main units and section breakers are set, and the spacing distance is too small. Traditional relay protection is hard to meet the requirement of selectivity; it is also not suitable if using recloser because multiple reclosing will exert big impact on system. This paper puts forward a new fault processing recovery strategy through analyzing the defects in the old device, making full use of the advantages of traditional distributed protection, and combining with feeder automation principles based on centralized information intelligence. The new scheme combines both advantages, and references the device communication to make device communication amount little and switch action times few. It can locate failure point accurately and effectively, achieve automatic isolation fault in minimum range, and solve some complicated problems possibly encountered in the practical application of distribution network automation. The method can meet the requirement of intelligence.