This paper examines the relation between industrial location and the provision of public infrastructure, in the context of the new economic geography. The provision of public infrastructure has positive and negative effects: improving industrial productivity; reducing the market size through the taxation to finance the cost of the public investment. The relation between them decides industrial location. In conclusion, when transport costs are sufficiently high, industries concentrate on regions providing less public infrastructure, and when transport costs are sufficiently low, industries agglomerate to regions providing more public infrastructure.