A novel method is proposed to locate the source of events in power distribution systems by using distribution-level phasor measurement units, a.k.a., micro-PMUs. An event in this paper is defined rather broadly to include any major change in any component across the distribution feeder. The goal is to enhance situational awareness in distribution grid by keeping track of the operation (or misoperation) of various grid equipment, assets, distribution energy resources, loads, etc. The proposed method is built upon the compensation theorem in circuit theory to generate an equivalent circuit to represent the event by using voltage and current synchrophasors that are captured by micro-PMUs. Importantly, this method makes critical use of not only magnitude but also synchronized phase angle measurements, thus, it justifies the need to use micro-PMUs, as opposed to ordinary RMS-based voltage and current sensors. The proposed method can work with data from as a few as only two micro-PMUs. The effectiveness of the developed method is demonstrated through computer simulations on the IEEE 123-bus test system, and also on micro-PMUs measurements from a real-life 12.47 kV test feeder in Riverside, CA. The results verify that the proposed method is accurate and robust in locating the source of different types of events on power distribution systems.