The micro-phasor measurement unit (μPMU) provides a measurement basis for distribution automation upgrade, but the present stage of the number of μPMU cannot really meet the needs of fault location in a traditional distribution network. To address this, this paper proposes a fault location method based on hybrid measurement state estimation by integrating the μPMU and a smart meter (SM) and considering a multiple state estimation method of virtual buses. First, the measurement data from the μPMU and smart meter are input into the state estimator by equivalent transformation. Then, the positions of the μPMU are exploited to divide the network into different zones. It calculates fault current by estimated results to restrict the fault searching zone and to reduce computational complexity. To locate the fault within the identified zone, additional virtual buses are placed to form a multiple specific fault topology and execute fault state estimation respectively. This calculates the weighted measurement residual index to identify the fault location. Finally, through real-time digital simulation system (RTDS) tests, the results verify that the method can precisely ascertain the fault locations in various fault scenarios and has good robustness to measurement noise.