We propose a dissipativity-preserving structured model reduction method for distributed control systems. As a fundamental tool to develop structured model reduction, we first establish dissipativity-preserving model reduction for general linear systems on the basis of a singular perturbation approximation. To this end, by deriving a tractable expression of singular perturbation models, we characterize dissipativity preservation in terms of a projection-like transformation of storage functions, and we show that the resultant approximation error is relevant to the sum of neglected eigenvalues of an index matrix. Next, utilizing this dissipativity-preserving model reduction, we develop a structured controller reduction method for distributed control systems. The major significance of this method is to preserve the spatial distribution of dissipative controllers and to provide an a priori bound for the performance degradation of closed-loop systems in terms of the H-2-norm. The efficiency of the proposed method is verified through a numerical example of vibration suppression control for interconnected second-order systems.