This paper presents a new technique for the protection of power transmission systems by using the Global Positioning System (GPS) and fault generated transients. In the scheme, the relay contains a fault transient detection system together with a communication unit, which is connected to the power line through the high voltage coupling capacitors of the CVT. Relays are installed at each busbar in a transmission network. These detect the fault generated high frequency voltage transient signals and record the time instant corresponding to when the initial travelling wave generated by the fault arrives at that busbar. The communication unit is used to transmit and receive coded digital signals of the local information to and from the associated relay(s) in the system. At each substation, the relays determine the location of the fault by comparing the GPS time stamps measured locally with those received from the adjacent substations. Extensive simulation studies presented in the paper demonstrate the feasibility of the scheme.