Light Rail Transit (LRT) is a mode with high performance, low cost, short construction period and better environmental aspect. It is becoming a major mode in urban areas around the world. Taiwan area is characterized by high population density with great potential to develop mass transit, thus it is also a suitable place to study and deploy the LRT. For the cities without very high travel demand which may not need Mass Rapid Transit (MRT), or subject to financial constraint unable to build MRT, or needing feeder systems to support existing MRT, it is possible to introduce LRT. In this paper, an urban planing area in Taipei is taken as an example to study the conceptual development of LRT into existing transportation system. It will be useful for better understanding and promoting LRT into Taiwan area.