We present a new pointer and escape analysis. Instead of analyzing the whole program, the algorithm incrementally analyzes only those parts of the program that may deliver useful results. An analysis policy monitors the analysis results to direct the incremental investment of analysis resources to those parts of the program that offer the highest expected optimization return. Our experimental results show that almost all of the objects are allocated at a small number of allocation sites and that an incremental analysis of a small region of the program surrounding each site can deliver almost all of the benefit of a whole-program analysis. Our analysis policy is usually able to deliver this benefit at a fraction of the whole-program analysis cost.