This paper describes a new method for determining the permissible operating range of DG(Distributed Generation) when DG is introduced into power distribution systems of which the voltage is controlled by LDC(Line Drop Compensator). Much of the DG installed during the next millennium will be accomplished through the reconstruction of the electric power industry. But in that case, it is difficult to properly maintain the terminal voltage of low voltage customers by using only LDC. This paper presents a method for determining the permissible operating range of DG for proper voltage regulation of power distribution systems with LDC. Proposed method has been applied to a 22.9 kV model and practical distribution systems, and its result is almost identical with the simulation result.