This note developed a distributed fault detection and isolation scheme for a class of large-scale systems in discrete-time framework. The unstructured modeling uncertainty and abrupt and incipient faults are considered in this scheme. By using overlapping decompositions, the large-scale system is decomposed into a set of subsystems which are monitored by a network of local fault detectors (LFDs) and local fault isolation estimators (LFIEs). Specially, the LFIEs, corresponding the faults affecting the common components among different subsystems, may reach a cooperative (or consensus) isolation decision, based on the fact that they can exchange some knowledge about the local information of system by suitable communication links. As a result, for these LFIEs, the capability of isolating faults may be improved. Moreover, the derivation of rigorous analytical results for the detectability and isolability properties of the proposed scheme is given. Simulation results are provided to show the effectiveness of the presented scheme.