This paper dealt with the frequency spectrum analysis of acoustic signal produced by partial discharge (PD) in insulation oil and the positioning of PD occurrence to apply in diagnosis of oil insulated transformers. Three types of electrode system ; the needle-plane, the plane-plane, and the wire-wire structure were assembled to simulate partial discharges in oil insulated transformers. A low-noise amplifier and a decoupling circuit were designed to detect acoustic signal with high sensitivity The frequency spectrum of the acoustic signal were 50 kHz ${sim}$ 260 kHz in the needle-plane, 50 kHz ${sim}$ 250 kHz in the plane-plane, and 45 kHz${sim}$195 kHz in the wire-wire electrode system. Their peak frequencies were 145 kHz, 130 kHz and 114 kHz, respectively The position of PD occurrence was calculated by the time difference of arrival (TOA) using three acoustic emission (AE) sensors, and we could find the position within the error of 1 % in the experimental apparatus.