A method and an apparatus for providing, setting, maintaining, and releasing a packet data network (PDN) connection on the basis of a local area in a wireless communication system are provided. The method includes receiving the PDN subscription information on the basis of the local area from a business operator server, inspecting whether the current location information for the terminal exists in the PDN subscription information on the basis of the local area, and starting a procedure for setting the PDN on the basis of the local area when the current location information exists therein.