Aimed at the radiate characters of the traveling waves in the slot and outside， the transient circuit models for hydro-generator stator windings are built. By applying the wavelet theory， the traveling signals of the grounding stators are analyzed to locate the fault point. The mathematical model for the speed of traveling waves is discussed. Algorithms to locate the fault point by the wave’s aerial and ground modes are also discussed without knowing the phase to modulus transformation for speed. Wavelet theory for picking up traveling waves is illustrated. Circuit model is built with the tool of MATLAB 6.5 based on the parameters for a large salient generator and an AV source is added to simulate the grounding behavior of the stators. The traveling time characteristic of the radiate traveling-wave is ensured in high frequency layer after the wavelet decomposed. The grounding point location methods with either the speed of traveling waves known or unknown are compared and analyzed and the simulation results demonstrate the validity and feasibility of the above techniques.