In this paper, effect of error in voltage measurement on output control of distributed generations(DGs) for voltage regulation in distribution systems is analyzed. Volt-Var and Volt-Watt control of a smart inverter which is regarded as one of the typical voltage regulation algorithms based on voltage measurement is considered and characteristics of active/reactive power control and performance of voltage regulation are theoretically evaluated. For verification of the analyzed effect, simulations based on the Korean distribution system are performed by using MATLAB/Simulink. Based on the simulation results, we can confirm that output control of DGs based on the voltage measurement at point of common coupling (PCC) is highly affected by even small error in voltage measurement.