This paper proposes a method of the optimal configuration of fault indicator in distribution network, which is maximum to reduce costs under the premise of ensuring the power supply reliability, through reasonable planning the number and installation location of fault indicator. With factors such as equipment investment costs, operation maintenance costs and interruption costs, the mathematical model is solved by bacterial foraging algorithm (BFA). For the problems BFA existed in solving discrete domain, by defining the evolution domain to determine the direction of bacteria to promote chemotaxis solution can make it to solve 0-1 programming problem well, and through setting up electronic bulletin board to avoid the migration operator have a chance to remove the possibility of the optimal solution. Based on IEEE33 system simulation, the results prove the effectiveness and scientificity of the scheme.