This research aims to analyze the leading economic sector in the Regency of Kulon Progo. The analyze is done by comparing the GDRP on the basis of Constant Prices of Kulon Progo in 2010 and GDRP on the basis of Constant Prices of Daerah Istimewa Yogyakarta in 2010. The used model is the Shift Share analysis, Location Quotient analysis, Klassen Typology analysis and SWOT analysis. Based on the result of the Shift Share analysis, Location Quotient analysis and Klassen Typology analysis, the leading economic sector is Mining and Quarrying sector; Wholesale and Retail Trade, Repair of Motor Vehicles and Motorcycles sector; and Public Administration and Defence, Compulsory Social Security sector. Based on the result of the SWOT analysis, policy strategy leads to the optimization of the development of the trade sector as a leading sector based self-reliance in favor of increasing regional competitiveness.