A method for determining installation locations of a plurality of fault indicators in a power network includes a database retrieving step, an installation location setting step, a fault analyzing step, a communication quality analyzing step, a successful probability determination step and an installation location updating step. An apparatus for determining installation locations of a plurality of fault indicators in a power network includes a database, a processor, a fault analyzing module and a communication analyzing module. The processor retrieves graphical information, communication quality information, and fault rate information of feed lines of the power network from the database. The fault analyzing module generates a plurality of fault points in different zones of the power network. The communication analyzing module measures a communication quality and calculates a communication quality information cumulative probability of each zone and then calculates a successful communication probability of each zone.