L AND VALUES SHAPE the patterns of land use in a city. Land values are also linked to such vital urban problems as transportation, neighborhood development, and tax equity. To understand why land values have such a broad influence on urban development and urban problems some knowledge of the relationship between land values and improvement values is necessary. The purpose of this paper, therefore, is to analyze the association between residential land values and improvement values in a central city, taking into consideration such locational factors as neighborhood environment and distance from the central business district.