The sensor location optimization is the special problem of distributed parameter systems(DPS) for parameter identification. It has a great influence on the accuracy of parameter identification and it is important to optimal control of DPS. Therefore, it has a great significance to research the strategy of sensor optimal measurement locations for DPS. In this paper, based on the orthogonal function approximation method, Haar wavelet transforms method is applied to research the problem of sensor measurement locations of DPS. The method based on Fisher information matrix derived from the differential sensitivity equations is proposed to determine the sensor optimal measurement locations. The identification examples prove that the proposed method based on wavelet transforms is feasible and effective to locate the sensor in order to obtain the optimal measurement values. The algorithm makes the calculation simple, easy and accurate.