Low cost intelligent monitoring system is developed on the basis of characteristic of rural grids distribution substation. The system separates into three parts. Monitoring terminal, master station and communicate - security module. Typical monitoring terminal is developed based on design standards of rural grids distribution substation. Moderate master system performance is adapt to the quantities limitation of rural distribution substations. public network is used to reduce communication cost. Data security is protected through software and hardware Encryption. On this basis, the test run experience is summarized. The improvement and promotion of monitoring system is discussed. The coordination is enhanced between monitoring terminal and intelligent control and protection switching. The test result shows that rural power grids distribution substation intelligent monitoring system can achieve rural grids automation.