Recent events related to power system failure have shown that voltage collapse can be a cause of widespread outages.The thrust of this paper is to discuss and establish means of mitigating system voltage instability by using a combination of both reactive current droop compensation and line drop compensation.It is shown that the point that the voltage regulator controls can be defined by a new method which is based on a widely accepted voltage stability analysis tool.This tool can be used to determine which generators will have an impact on the maximum permissible loading of a bus.Dynamic analysis was carried out on the CIGRE Nordic test system to study the impact of control point location on time to collapse and it is shown that the new scheme can improve the voltage stability.