Successful distributed photovoltaic (PV) planning now requires a hosting capacity assessment process that accounts for an appropriate model of PV output and its uncertainty. This paper explores how the PV hosting capacity of distribution networks can be increased by means of spatial correlation among distributed PV outputs. To achieve this, a novel PV hosting capacity assessment method is proposed to account for arbitrary geographically dispersed distributed PVs. In this method, the empirical relation between the spatial correlation coefficient and distance is fitted by historical data in one place and then applied to model the joint probability distribution of PV outputs at a neighboring location. To derive the PV hosting capacity at candidate locations, a stochastic PV hosting capacity assessment model that aims to maximize the PV hosting capacity under thermal and voltage constraints is proposed. Benders decomposition algorithm is also employed to reduce the computational cost associated with the numerous sampling scenarios. Finally, a rural 59-bus distribution network in Suzhou, China, is used to demonstrate the effectiveness of the proposed PV hosting capacity assessment methodology and the significant benefits obtained by increasing geographical distance.