Distribution network (DN) has complicate structure and different loads which lead to many kinds of power quality problems. Power quality regulating equipments (PQRE) should be adopted to improve the problems. Characteristics and applicability of four PQREs and power quality problems of DN are analyzed. And PQREs centralized and dispersed allocation strategy (CDAS) of DN is proposed. The target function and constraint condition of optimal allocation are presented and mathematical model is established according to field conditions and customer requirement. CDAS implementing plan and feature are analyzed in detail based on function, equipment and investment. Unified CDAS is formed by combining centralized allocation with dispersed allocation based on genetic algorithm. Simulation example analyzes optimal allocation of PQREs in distribution network with IEEE 33 nodes. The results show that CDAS effectively solves power quality problems and optimizes installed equipments.