The Border Gateway Protocol (BGP) is the single inter-domain routing protocol that enables network operators within each autonomous system (AS) to influence routing decisions by independently setting local policies on route filtering and selection. This independence leads to fragile networking and makes analysis of policy configurations very complex. To aid the systematic and efficient study of the policy configuration space, this paper presents network reduction, a scalability technique for policy-based routing systems. In network reduction, we provide two types of reduction rules that transform policy configurations by merging duplicate and complementary router configurations to simplify analysis. We show that the reductions are sound, dual of each other and are locally complete. The reductions are also computationally attractive, requiring only local configuration information and modification. We have developed a prototype of network reduction and demonstrated that it is applicable on various BGP systems and enables significant savings in analysis time. In addition to making possible safety analysis on large networks that would otherwise not complete within reasonable time, network reduction is also a useful tool for discovering possible redundancies in BGP systems.