An exposure apparatus for exposing an object with an energy beam via a projection optical system and a liquid (Lq), the apparatus comprising: a frame member arranged to support the projection optical system; a nozzle unit provided to surround a lens that is disposed closest to an image plane side, of a plurality of optical elements of the projection optical system, and configured to form a liquid immersion area with the liquid under the projection optical system, the nozzle unit having a supply opening and a recovery opening for the liquid and a lower surface in which the recovery opening is disposed, and the nozzle unit being arranged so that the lower surface is disposed lower than an emitting surface of the lens; a stage that has a holder for holding the object, and is movable in at least a first direction and a second direction that are orthogonal to each other within a predetermined plane, the predetermined plane being perpendicular to an optical axis of the projection optical system; a drive system configured to drive the stage; an encoder system in which a head (62A, 62B, 62C, 62D) is provided to the stage and a grating section (39Y 1, 39Y 2, 39X 1, 39X 2) is provided to the frame member so as to face the stage, and which is configured to measure position information of the stage with a plurality of the heads that face the grating section; and a controller configured to control the drive system, based on correction information for compensating a measurement error of the encoder system that occurs due to the grating section and based on measurement information of the encoder system, wherein the grating section is provided to the frame member so that the grating section is disposed on an outer side of the nozzle unit with respect to the projection optical system. a frame member arranged to support the projection optical system; a nozzle unit provided to surround a lens that is disposed closest to an image plane side, of a plurality of optical elements of the projection optical system, and configured to form a liquid immersion area with the liquid under the projection optical system, the nozzle unit having a supply opening and a recovery opening for the liquid and a lower surface in which the recovery opening is disposed, and the nozzle unit being arranged so that the lower surface is disposed lower than an emitting surface of the lens; a stage that has a holder for holding the object, and is movable in at least a first direction and a second direction that are orthogonal to each other within a predetermined plane, the predetermined plane being perpendicular to an optical axis of the projection optical system; a drive system configured to drive the stage; an encoder system in which a head (62A, 62B, 62C, 62D) is provided to the stage and a grating section (39Y 1, 39Y 2, 39X 1, 39X 2) is provided to the frame member so as to face the stage, and which is configured to measure position information of the stage with a plurality of the heads that face the grating section; and a controller configured to control the drive system, based on correction information for compensating a measurement error of the encoder system that occurs due to the grating section and based on measurement information of the encoder system, wherein the grating section is provided to the frame member so that the grating section is disposed on an outer side of the nozzle unit with respect to the projection optical system.