The development style of open source has a possibility to create new business markets for Regional IT industries. Some local governments are trying to promote their regional IT industries by adopting an open source in their electronic government systems. In this paper, we analyze the data of open source application policy of the Japanese government and case studies of promotion policy of local industries by local governments; for example, Nagasaki Prefecture and Matsue City. And it aims to extract the issues in the open sources application policy of local governments and the promotion policy of regional industries in Japan.