This paper presents a status report concerning on-going research and development work by a team of Canadian researchers to develop a microsimulation, agent-based, integrated model of urban land use and transportation. It describes in some detail the overall design and current status of the ILUTE (Integrated Land Use, Transportation, Environment) modelling system under development. The overall purpose of ILUTE is to simulate the evolution of an entire urban region over an extended period of time. Such a model is intended to replace conventional, aggregate, static models for the analysis of a broad range of transportation, housing and other urban policies. Agents being simulated in the model include individuals, households and establishments. The model operates on a “100% sample” (i.e., the entire population) of agents which, in the base case, are synthesized from more aggregate data such as census tables and which are then evolved over time by the model. A range of modelling methods are employed within the modelling system to represent individual agents’ behaviours, including simple state transition models, random utility choice models, rule-based “computational process” models, and hybrids of these approaches. A major emphasis within ILUTE is the development of microsimulation models of market demand-supply interactions, particularly within the residential and commercial real estate markets. In addition, travel demand is modelled explicitly as the outcome of a combination of household and individual decisions concerning the participation in out-of-home activities over the course of a day. Spatial entities in the model include buildings, residential dwelling units and commercial floorspace, as well as aggregate “spatial containers” such as traffic zones, census tracts or grid cells.