The subject of this study is the relationship between state and municipal authorities, representatives of business sector, the population of certain territories in terms of the need for physical interaction between government and business, which ultimately affects the location of the population. The goal is to prove that Russia's big business itself strives to be physically closer to the authorities, which does not have a positive effect on the processes of urbanization. In its turn, foreign experience demonstrates more effective options for the relationship between state and business that do not affect other social processes. In this work, the author uses statistical method, the method of modeling in terms of formulating the author's proposals, expert assessments, comparative legal method, as well as general scientific methods of deduction, induction, analysis and synthesis. The work shows close relationship between business and public authorities in the Russian Federation, which is due to the territorial location of a large number of people in the area where there are conditions for such interaction. The described situation is not characteristic of most foreign countries. Some variants of influence for overcoming the specified problem are offered. Scope of the results: public administration system, including the processes of state influence on economic entities. Also, individual proposals can be applied in urban planning, solving issues of demography and urbanization. Russia is characterized by a very close relationship between state power and the commercial sector, which significantly distinguishes it from most of other countries, at least in terms of territorial structure. This situation has a negative impact on a large number of social institutions, and therefore it is necessary to take a number of organizational measures, including the use of administration of planning and urban planning activities based on foreign experience.