Robustness, Low cost and Easy maintenance with-out power electronics components is considered as the key factors for the novel approach, known as Voltage regulator , for Rural distributed networks. These characteristics make it suitable for rural networks, where investments and operational cost in power quality improvement are limited. The regulator consists of a multi winding reduced-power transformer, and provides serial voltage compensation. Different voltage compensation steps are obtained by modifying the connection and the polarity between the primary and secondary windings. The transformer design has been optimized to obtain a high-efficiency and low-cost regulator. An automatic controller monitors the output voltage and sets the optimal compensation step. The results were studied in MATLAB/SIMULINK.