A new method for detection of power quality disturbance is proposed: first, the original signals are de-noised by the wavelet transform; second, the beginning and ending time of the disturbance can be detected in time, third, determining the cause of power quality disturbances using various approaches such as Multi Resolution Analysis (MRA) or Discrete Wavelet Transforms (DWT) In this paper, wavelet transform is proposed to identify the power quality disturbance at its instance of occurrence. Power quality disturbances like sag, swell, interruption, DC offset, frequency variation and harmonics are considered and are decomposed up to 4 levels using Db4 wavelet. For some disturbances it is sufficient to have only second or third level of decomposition. The exact location of the disturbance can also be found on the time scale. The application to a case study shows that this method is fast, sensitive, and practical for detection and identification of power quality disturbance.