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A time-difference-of-arrival-based partial discharge (PD) location system that utilises prior knowledge of substation layout is presented. We propose a new time delay estimator that employs onset detection techniques and demonstrate, through experimental results, that it is at least 2.8 times more accurate than other conventional estimators. Using knowledge of a substation’s layout, we develop a minimum mean-square-error (MMSE)-based location estimator and an algorithm that optimises antenna placement to maximise location accuracy in regions occupied by high-voltage equipment. Simulation results show that a system that uses the proposed techniques is 5.9 times more accurate than a more conventional system in a high-noise environment.