This paper presents a decision making methodology based on fuzzy logic for an optimal location of distributed generation (DG) sources into an electrical distribution system to reduce the losses and improve the voltage profile. The methodology has two stages: at first is determined the preferential zone where can be located the DG based on the operational characteristics (modelled in paper as fuzzy variables) and the second stage determines the optimal location for DG using Hurwitz criterion. The methodology is verified on a 20 kV real rural distribution network.