This paper aims to develop an integrated transportation and land use model which can be used to predict and simulate urban development. The model which utilizes optimization technique to incorporate transportation and land use is developed. In one aspect, the model adopts the spatial interaction theorem to distribute population and employment. In another aspect, the model uses equilibrium assignment method to assign travel demand. The paper comes to some conclusions: 1. Concerning with the model structure, the integrated model has considered the interaction between transportation and land use. The locations of population and employment are influenced by the network travel cost which is also affected by the distribution of population and employment. 2. As far as model technique is concerned, the integrated model utilizes optimization technique as well as equilibrium assignment method in model’s solution algorithm. Not only could the equilibrium state of transportation and land use obtain, but also the route assignment submodel might obey the drivers’ behavior. 3. For the applicability of the proposed model, since the paper has used the are flow as decision vector in route assignment problem, the model would be convenient to be applied in a large metropolitan area.