This research was performed on methods to promote integration between urban and rural sectors in the San En Nan Shin region using an Urban-Rural Linkage Model that investigates social surplus maximization, effects of introducing an environmental tax, and transport cost minimization due to land use transformation in a fallow agricultural region. Land use transformation was studied in terms of (1) an economic priority model,(2) an environmental harmonization model, and (3) a balanced model. Economic and environmental outcomes including the impact on price from the environmental tax were quantitatively analyzed for each case.