Recently, there has been growing interest in distributed resources with high-energy efficiency due to the increasing energy consumption and environmental pollution problems. But an insertion of new distributed generation to existing power distribution systems can cause several problems such as voltage variations, harmonics, protective coordination, increasing fault current etc. In this paper, a new method of the fault location identification at the distribution system with distributed resources, which can be determined by the magnitude and direction of the fault current, is proposed. In addition, a new online protective coordination scheme of recloser-sectionalizer is proposed based on the proposed fault location identification method for distribution system with distributed resources.