This paper presents a fault location algorithm using direct 3-phase circuit analysis for distribution power networks. The unbalanced feature of distribution networks due to single phase loads or asymmetric operation prohibits us from using the conventional symmetrical component transformation. Even though the symmetrical component transformation provides us with a very easy tool in three phase network analysis, it is limited to balanced systems in utilizing its strong point, which is not suitable for distribution networks. In this paper, a fault location algorithm using direct 3-phase circuit analysis is developed. The algorithm is derived and it Is shown that the proposed method if we use matrix inverse lemma, is not more difficult then the conventional methods using symmetrical component transformation. Since the symmetrical component transformation is not used in the suggested method, unbalanced networks also can be handled with the same difficulty as balanced networks. The case study results show the correctness and effectiveness of the proposed algorithm.