In order to reduce the overvoltage level and the trip rate in power system, the grounding method with arc suppression coil and low resistance in parallel is applied gradually in distribution network. In the paper, the distribution network model with neutral flexible grounding was established in PSCAD, including the arc grounding fault model and repeated calculated fault model. Voltage simulations were carried on from the aspects such as fault type, the time when small resistance into and the fault happen time. The results show that the fault type can be judged by the fault voltage waveform. In addition, the overvoltage is smallest when small resistance is into at the moment that the neutral voltage is 0 around.