Complex engineering systems require efficient fault diagnosis methodologies, but centralized ap- proaches do not scale well, and this motivates the development of distributed solutions. This work presents an event-based approach for distributed diagnosis of abrupt parametric faults in continuous systems, by using the structural model decompo- sition capabilities provided by Possible Conflicts. We develop a distributed diagnosis algorithm that uses residuals, computed by extending Possible Conflicts, to build local event-based diagnosers based on global diagnosability analysis that gen- erate globally correct local diagnosis results. The proposed approach is applied to a multi-tank sys- tem, and results demonstrate an improvement in the design of local diagnosers. Since local diag- nosers use only a subset of the residuals, and use subsystem models to compute residuals (instead of the global system model), the local diagnosers are more efficient than previously developed dis- tributed approaches.