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Mobile IP is the current standard supporting user mobility in wireless IP networks. Mobile IP regional registration is proposed by IETF to reduce the mobile IP location update cost by making the registration localized. A distributed regional registration scheme is also introduced to choose the GFAs dynamically. In the distributed scheme, the signaling burden is evenly distributed among the network and the regional network boundary is dynamically adjusted according to the mobile user's up-to-date mobility and traffic load. In this paper, we develop a system model to analyze the distributed scheme performance. We also propose an improved distributed scheme which is called improved distributed regional location management scheme in our paper. The analytical results show that the dynamic scheme can reduce the mobile IP mobility management cost effectively and the improved scheme can perform better.