This work describes the design, implementation and evaluation of a novel fault location system for compensated networks. The work is performed as a part of the ongoing EU FP7 project called DICERN, involving five distribution network operators and several manufacturers and research institutes in Europe. In order to achieve its main goal of finding optimal level of intelligence in distribution grids the demonstration sites play a key role in achieving the central goals of the project. The aim of the Swedish demonstration is to gain knowledge on smart grid network operations and find a cost effective solution for monitoring the medium voltage (MV) network using “simple” sensors. The main objective is to geographically pinpoint faults in the distribution network and furthermore to evaluate the functionality of MV monitoring for fast and reliable fault identification and indicating distance to faults.