A new method for short circuit fault location is proposed based on instantaneous signal measurement and its derivatives, and is based on the retardation phenomena. The difference between the times in which a signal is registered in two detectors is used to locate the fault. Although a description of faults in terms of a lumped circuit is useful for elucidating the methods for detecting the fault. This description will not suffice to describe the fault signal propagation hence a distributed models is needed which is given in terms of the telegraph equations. Those equations are used to derive a transmission line transfer function, and an exact analytical description of the short circuit signal propagating in the transmission line is obtained. The analytical solution was verified both by numerical simulations and experimentally.