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An optimal planning model of the sectional switch and tie line for the distribution network is proposed considering the tradeoff between the system reliability and economy. First, the fault incidence matrices are established for the distribution network, and the explicit analytical expression of the system reliability index is realized by the algebraic operation of the fault incidence matrices and fault parameter vectors. Then, the 0–1 integer quadratically constrained optimization model is established for the sectional switch configuration considering the capacity constraint of the tie line. Finally, the sectional switches and tie lines are optimized jointly to ensure the economic investment and maximize the system reliability. The distribution network in Taiwan Power Company is used to verify the applicability of the proposed optimization method. Compared with the intelligent optimization algorithm, the mathematical programming method in this paper can always find the global optimal switch configuration quickly. In addition, the influence of the tie line capacity constraints on the sectional switch configuration is also considered, which can provide practical reference for the power network planners in the optimization design of the distribution network. [ABSTRACT FROM AUTHOR]