A device manufacturing method develops a substrate that has been exposed with illumination light via a projection optical system. The exposing includes holding the substrate with a stage below the projection optical system; in an encoder system in which one of a grating section and a head is provided at the stage and the other of the grating section and the head is provided at a frame member to be disposed above the stage, on a lower end side of the projection optical system, and which irradiates the grating section with a measurement beam via the head, measuring positional information of the stage with a plurality of the heads that face the grating section; moving the stage based on the positional information measured with the encoder system while compensating for a measurement error of the encoder system related to a measurement direction of the positional information by the heads.