A distributed hybrid strategy is outlined for the isolation of faults and disturbances in the Tennessee Eastman Process, which would build on existing structures for distributed control systems, so should be easy to implement, be cheap and be widely applicable. The main emphasis in the paper is on one component of the strategy, a steady state based approach. Results obtained by applying this approach are presented and knowledge limitations are discussed. In particular a way in which a knowledge-base might evolve to improve isolation capabilities is suggested and the role of the operator is briefly discussed.