This study intended to compare the gaps between border areas that occur when the regulations for capital areas are applied uniformly based on administrative districts without considering regional characteristics and potentials and consider policy level improvement measures. This study analyzed the difference between indicators depending on whether or not the regulations for capital areas apply to the areas where administrative districts are divided by the same water system within the nature conservation zone. Over the past 20 years, the population and the number of companies and workers in the manufacturing industry showed greater growing trend in border areas in non-capital areas than capital areas. The number and average area of industrial complexes were absolutely higher in non-capital areas. The regulations had the effect of pressing down the concentration of population and manufacturing industry, which is the purpose of the regulations for capital areas. However, there was a contradiction that industrial locations were allowed in non-capital areas that are in the upstream areas when regulations for industrial locations were for the conservation of water and environment, which is the purpose of designating nature conservation areas. As a result of examining the proposals from the National Assembly and Gyeonggi Province related to the regulations for capital areas regarding these problems, there were continuous discussions to give selective regulatory exceptions by considering regional characteristics commonly under special situations or exclude them from the capital area altogether to avoid the application of regulations. As a plan to alleviate regional gaps in border areas on the policy level, it is necessary to promote regional economic revitalization by promoting joint cooperation projects between local governments of cities and counties and selectively applying regulatory exceptions through the designation of special economic zone for specialized regional development. In the long term, it is necessary to fundamentally improve various location regulations including border areas. It is necessary to apply subdivided application of the regulations according to regional characteristics rather than applying them based on administrative districts uniformly. Although the need for regulations for capital areas for balanced national development and protection of the natural environment is acknowledged, it is deemed that more differentiated policies should be implemented by considering a sense of relative deprivation in areas that are underdeveloped than non-capital areas and to improve equity among local governments in border areas.