I think you would just check the box under the Distributor page that says, "Notify on New Order". As far as the email, I didn't see one under Settings>>Design>>Emails. But perhaps you could copy and paste part of code from the New Order - Merchant Email Template into the email box on your Distributor pages.
After doing this - You could always enter your email address in the email box on one of your distributor pages and place a test order to see if it works.
I'd be curious to know if there's a better way or email template specifically for this....We'll be working on the same thing soon.
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