As many Distributed Generations (DG) have penetrated into a distribution system, many distribution systems become a loop and identification of current direction is a troubled issue since direction can't be known from current magnitudes for the system with DGs. In this paper, the method to identify the direction of current from measurements is proposed. Identification rules have been developed from logical analysis of relationship among various data - current magnitudes, power factor angles, their measurement locations and network topology. The developed method has been tested using MATLAB and has shown its accurate identification.