Physical planning influences the mobility of people (person and vehicle kilometers ; modal split) and the environmental impact of this mobility. Studies show that the potential influence of physical planning is significant. A key factor is the percentage of people living and working in the same region. In the second, third and fourth report on physical planning the Dutch government gives physical planning an important role in solving the traffic problems. As far as the first three reports are concerned the policies on this subject were not very successful. In the fourth report the so called location policy is introduced. It aims to get 'the right business in the right plase'. The result has to be less car use and more use of the alternatives, e.g. public transport, bicycle, carpooling. The policy has a theoretical and empirical sound basis. Nevertheless it caused many critical reactions. They show that this policy can be improved. To make the location policy successful it is of great importance that also other parts of the present Dutch policy on traffic and transport will be realised successfully. The most important ones are pricing policy for car use and public transport, parking policy and improvement of public transport, especially the capacity of the railway system and the quality of regional public transport.