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Base on the characteristics and application needs of the distribution system in China smart grid, the distribution automation technology and its development strategy are studied with a reality applications engineering. First, this paper makes a particular analysis of the main problems occurred on distribution automation engineering developing now in China. And then some key technology strategies are discussed, including the correlative technology with the concentrated type distribution automation system, the special application needs of the distribution in China smart grid, master station and remote terminal unit of distribution automation system, information integration, of distribution automation system, and so on. Finally, some application examples are given about the above key technology strategies to the several practical projects in China.