This research proposed a framework to investigate the social costs/benefits and applicability of a building regulation strategy based on flood risk information. We applied the location equilibrium model to Neya River catchment, and predicted the distribution of population and the rent for housing those zones. The framework was applied to Neya River catchment and showed that the social benefits exceeded the costs due to building regulation which prohibited the use of area inundated with rainfall events of 2-30 years return periods.