I guess we need more context to give you a more specific answer JSouza. Just asking about "edge distance" in general can lead to all sorts of ideas about the configuration of the joint you may or may not be looking at.
Excess ED on a long skin joint, measured from the centerline of the row to the edge of the sheet would be a waste of material and add weight, and if taken to extremes could allow the edge of the sheet to be "peeled up". On the other hand, there is also an ED to be measured at the END rivet of the row, to the other edge of the sheet, and if this distance is excessive, then not only could this corner be lifted up, but the cross section around the unattached area will be unstressed by skin forces, while sheet in the area of the rivets will be, leading to a greater propensity for the corner to lift.
But I could be inventing an example that is different from the case you're interested in, J.
STF