A method for detecting broken rail and track occupancies measures both the electrical current and voltage on each end of the block of track. This allows a broken rail to be detected even with a shunting axle (occupancy) in the same detection block. The method also provides broken rail detection capability to support modes of operation in which a following train maintains safe spacing from a leading train without the use of track circuit information for train location, allowing for reduced train spacing. The current and voltage measurements are used to make binary decisions, in order to minimize the sensitivity to variations in track impedance characteristics. When combined with train location information, this method also allows for identifying the location of a rail break.