This paper proposes a general framework for implementing distributed frequency regulation (DFR) on large-scale prosumer-based power systems, where each prosumer represents a frequency control area. DFR is a distributed architecture for balancing power between larger prosumers, such as utilities and ISOs (Independent System Operators). This paper first introduces a framework to obtain quasi-steady state models of prosumers from the dynamic models of generators, loads, and the power grid. This model allows illustrating the effect of prosumers’ control actions on the system-wide frequency stability. Next, a coordinated architecture for regulating frequency between prosumers is proposed, under which prosumers solely communicate with their neighbors to obtain their optimal control actions. The DFR algorithm is demonstrated on a realworld large-scale ISO system and the results show that DFR can complement today’s AGC (Automatic Generation Control) systems by providing a coordinated protocol for power balancing and frequency regulation.