This paper presents a new approach to evaluate reliability indices of electric distribution systems using genetic Algorithm (GA). The use of reliability evaluation is an important aspect of distribution system planning and operation to adjust the reliability level of each area. In this paper, the reliability model is based on the optimal load transforming problem to minimize load generated load point outage in each sub-section. This approach is one of the most difficult procedures and become combination problems. A new approach using GA was developed for this problem. GA is a general purpose optimization technique based on principles inspired from the biological evolution using metaphors of mechanisms such as natural selection, genetic recombination and survival of the fittest. Test results for the model system with 24 nodes 29 branches are reported in the paper.