Abstract: The construction of the high-reliability smart distribution network demonstration zone in Hangzhou Future Sci-Tech City focuses on achieving "high reliability" and "high hosting capacity" as its core objectives. Through grid structure optimization, enhanced operation and maintenance management, intelligent fault handling, and source–grid–load interaction, the project has preliminarily established a modern smart distribution grid demonstration. Key innovations include Zhejiang's first "dual-petal" distribution network structure enabling millisecond-level fault isolation, an integrated "sky-space-ground" digital operation and maintenance model that improves equipment monitoring efficiency, and a transparent low-voltage distribution network with feeder automation to shorten fault recovery time. In addition, an energy regulation platform was developed to realize flexible control of distributed energy resources. The results show remarkable improvements: the power supply reliability rate increased from 99.9990% in 2023 to 99.9993% in 2024, along with significant enhancement in other performance indicators. This construction approach provides valuable reference for the development of high-reliability smart distribution grids in other cities.