The weaknesses of existing rural distribution network in Jiangxi province, such as large feeder line radius, poor operating environment, high failure rate and the unavailable real-time operation data of the network, causes the difficulty in troubleshoot, long power outage time, large area of blackout and low efficiency of repair. Distribution automation system based on conventional mode not only has large investment and long contribution cycle, but also has high requirements of operation and maintenance. This paper designs a simple and economical operation condition monitoring and fault isolation system for rural distribution network. The aspects of the proposed system including the realization goal, design principle and the overall structure are introduced, the design and construction scheme of the key parts of the system are explained in detail. Practical operation results show that the presented system has the advantages such as small investment, easy maintenance and operation, and it accommodate the current technical equipment level and personnel quality of Jiangxi rural power grid. It has practical value in improving the operation and maintenance management and power supply reliability of rural power network.