The Madrid region of Spain has experienced remarkable change in the configuration and use of its territory over the last 20 years, notably rapid and dispersed growth of transport networks and urban areas, accompanied by a steady decline in productive agricultural land, which has helped feed the development boom. Results of analysis of CORINE land cover data over 3 dates (1990–2000–2006) for a 77053ha study area north-west of the Spanish capital demonstrate that 8699ha (11.3%) of the total land area has been subject to change. Agricultural areas have shown significant reduction in area (down 1833ha, a 10% decline) while artificial surfaces, predominantly urban areas, have increased dramatically (up 3339ha, a 51% increase). Urban development has been intensive and poorly controlled. Investigation of these dynamics suggest serious concerns for sustainability in the territory. To move towards a more sustainable configuration, the implication of all stakeholders in the Madrid region will be required. A methodological framework is presented for implementation of sustainable development initiatives through sustainability action groups, in which integrated land use models and participatory planning activities are used to develop and test new policy initiatives.