Abstract
When it comes to keep and enhance activity level in a region, the local government should consider dynamics of industries, population, and their interactions. We developed a model to consider interaction of industry, employment, commuting and population in a local scale, which is applicable with available data in municipality level. The model is formulated in a definitive manner, and its parameters and corresponding policy issues are identified. The model was applied to So-ma region in Fukushima prefecture with a special focus on Shinchi town and four scenarios which correspond issues in the town were developed.