In order to reduce grounded current and restrain arc-grounded over voltage during single-phase grounded faults in transmission line and realize fault-line selection, the neutral grounded mode with Peterson coil in parallel with big reactor is proposed in the paper. The simulation and comparative analysis of the performance of the 10 kV distribution grid systems in different neutral grounded modes have been done. The simulation results have shown that the neutral grounded mode via Peterson coil in parallel connection with big resistances can restrain the fault current effectively and it is the best mode.