Electric power distribution system are usually unbalance. Therefore, a power flow method that can handle the three-phase configuration of the power system is needed so that the system planning and operation can properly be carried out. In the case of three-phase distribution system power flow analysis, for each system bus (except for substation bus), the voltage magnitude and angle of the three phases must be calculated. These calculations are carried out under certain loading conditions. After these voltages have been calculated, the electric power flows and losses in the distribution lines, and the substation power can also be determined. This paper proposes a new technique for three-phase distribution system power flow analysis using sequence components. The new formulation for the power flow problem in terms of sequence components is also proposed and developed in this paper. The application of sequence components has the advantage that the size of the problem can effectively be reduced, and solution to the power flow problem will be easier to find. Case study using a representative distribution test system confirms the validity of the proposed method where comparative studies between the proposed (i.e. sequence components based) method and the phase components based method are carried out.