The great efforts made by Japan in developing its local industries have attracted lots of attention worldwide. The "One Village, One Product" movement in Oita has been spread all over the country and extended to Los Angles and Louisianan in the United Sates, Philippine, Malaysia, and Shanghai and Wuhan in China. However, the development of Japan's local industries has once been hindered in the 1970s. But later Japan has taken various encouraging measures to protect the development of relevant industries, among which the enactment of "Traditional Crafts Industry Revitalization ACT" (enacted in 1974, hereinafter referred to as TCIRC) encourages the transmission of traditional crafts, and the enactment of "Act on Provisional Measures for Specific Industries Clustering and Activation" (enacted in 1997, hereinafter referred to as SIIA) leads the clustering of enterprises. In 2007, the latter of the above mentioned acts was revoked and replaced by the" Local Industries Clustering and Activation Act" and the "Act on Facilitating Local Resources Activation for small and medium-sized enterprises," so as to strengthen and facilitate the development of local industries and revitalize local economics. Based on the general development situation of Japan's local industries as well as relevant governmental acts, this thesis analyzes the details of the development of Japan's local industries for the references of relevant departments in Taiwan for drawing up revitalization strategies for local industries.