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This paper first investigates a local voltage and reactive power control (local control) in a distribution system based on local control of on-load tap-changer (OLTC), substation capacitors, and feeder capacitors, and how the presence of induction machine based distributed generation (DG) affects it. A proper coordination among those available voltage and reactive power control equipment to minimize losses in the distribution system, with and without DG, is formulated. Secondly, a combined local and remote voltage and reactive power control (local-remote control), which is based on automated remote adjustment to the local control in order to minimize the losses even more, is proposed. The automated remote adjustment in the local-remote control is also intended to keep the operating constraints fulfilled all the time, which cannot be achieved by using the local control when DG is present in the system. The OLTC and substation capacitors are assumed to be remotely controllable, while the feeder capacitors are not. DG with both constant power and varying power are investigated.