Bioethanol has recently been considered as a good substitute for fossil fuels. It is considered as a kind of biofuel that can be produced from agricultural crop residues like corn, wheat, potato, sugarcane and many others. Ethanol is most often used as an engine fuel, mainly as a biofuel additive for gasoline. The purpose of this study is to investigate availability of agricultural crop residues, then identify the most suitable locations for bioethanol production in the Fars Province of Iran. Complete reviews of available crop residues for twenty six cities of the province are investigated for this purpose. A Multi Criteria Decision Making (MCDM) approach of Data Envelopment Analysis (DEA) is performed to rank cities in order to find the most suitable location to install ethanol manufacturing plant. Six major criterions are investigated to perform DEA methodology which includes two outputs of   population and amount of available ethanol, and four outputs including distance, air pollution, price of ethanol, and price of land. Then Anderson-Peterson model of DEA for ranking was performed. Results indicate that Shiraz, Marvdasht, Eghlid, and Sepidan cities rank first to fourth respectively.