Caching frequently accessed data items on the client side is an effective technique to improve the system performance in mobile environment. Due to cache size limitations, the choice of cache replacement techniques used to find a suitable subset of items for eviction from cache becomes important. In this paper, we propose a new cache replacement policy, Predicted Region Based Replacement Policy (PRRP) for location dependent data in mobile environment. Unlike earlier cache replacement policies that consider only directional/non-directional data distance, PRRP takes into account data distance integrated with predicted region of client's movement that adapts to client's movement nature. It also considers the size of data item in cache. Simulation results show that our proposed policy significantly improves the system performance by more than 10 percent in terms of cache hit ratio, compared to previous schemes.