Abstract: How does environmental regulations affect industry distribution? Does environmental regulation result in a relocation of dirty goods production from countries with stringent environmental regulation to those with lax environmental regulation? Does environmental regulation influence the location behavior of industry in inter-regional of one country? Does environmental regulation affect the enterprises' location choice? Through a literature review, the author explores environmental regulation's impact on industrial distribution at the macro level, the meso level and the micro level. Meanwhile, the author believes that related studies in this field should be strengthened and the measurement method of environmental regulation improved.