In order to identify tendon rupture inside a prestressed concrete (PC) girder, new acoustic emission (AE) location system is necessary to be practically applied. In PC girder of an in-service highway, PZT sensors are installed at a web and a deck of the PC girder, and elastic waves generated by tendon rupture is simulated by steel ball impact. AE source location assuming the homogeneous velocity distribution is applied in a development view of the box-girder. Then to verify the accuracy of the location results, the effect of elastic-wave propagation at a joined corner between the web and the deck is simulated by FDM. As a result, the attenuation of first-arrival P waves was observed at the joined corner. It implies that wave energy is so attenuated that apparent velocity decreases. Finally, AE locations lead to erroneous solutions in the development view solved with a constant velocity. To solve the problem, a twostep location system is developed. In the first step, two-dimensional plane, where the tendon rupture is to be identified, is selected from the 1st and 2nd arrivals of AE Hits. Then, in the 2nd step, AE locations are determined from remaining AE sensors located on this plane. By applying this system, the location errors are within 5 % at the both web and deck in a 15 m long PC box-girder.