Limitation of fossil fuels and the environmental constraints established by the Kyoto Protocol and other governmental initiatives caused the allocation of distributed generation (DG) to be a vital pillar in power system planning. Improper selection of the sizing and siting of DG systems can reduce their advantages. Network reconfiguration problem is to find a best configuration of distribution systems that gives minimum energy loss with satisfying the imposed operating constraints. This paper investigates the effect of load model on DG allocation and network reconfiguration problems. The proposed algorithm implemented and tested on the 25-bus unbalanced distribution system and the impact of load models is demonstrated. The constraints involved include voltage limits, line current limits, and radial topology.