Abstract: This paper focuses on a study of the targets and methods of regional policy, and their roles in the regional economic development from the angle of economic locational theory. Furthermore, it raise up some viewpoints: (1) governments at different levels or policy making departments, through locational policy, such as improvement of investment environment, Locational allowance and inclination of locational policy, can induce or confine space choice of individual or enterprise’s behavior in economic activities and implement the effective, harmonious and continuous development of national territory; (2) The main functions of locational policy in the regional economy can be described as fellows. First, it can make the margins of profit space expand or narrow; second, it can speed or slow the concentration or decentralization of industry; third, it stimulates to form new industrial locational points, and it reduces the difference of regional economy.

Key words: economic locational theory, locational policy, regional economic development