A distribution network has complex structure and numerous branch lines, and using less traveling wave fault location equipment to achieve fault location throughout the network has significant economic benefits. Based on this, a method for optimizing the configuration of traveling wave fault location equipment based on observable faults across the entire network is proposed. First, a tree structure diagram is introduced to define the hierarchical relationship between nodes in the distribution network. Then, based on the characteristics of traveling wave transmission, the basic conditions for device configuration are proposed: in the target distribution network tree structure diagram, at least one adjacent node and its parent node are configured with devices. A mathematical model is established with the objective function of minimizing the number of devices using this basic condition as a constraint. The model introduces weight coefficients to quantify the impact of line length and historical fault rate on the degree of device configuration demand. Finally, the improved grey wolf algorithm is used to find the optimal solution of the model and form the optimal configuration scheme. The simulation results show that based on the proposed optimized configuration method, the amount of traveling wave fault location equipment can be significantly reduced while meeting the positioning accuracy requirement, reducing investment costs. The fault positioning error is less than 100 m. It also has a certain adaptability in the N1 case of the line, meeting practical engineering needs.