The energy and environmental implications of traffic movements through road networks at the local level (that is, 'dense' road networks) are considered. This level is becoming of critical importance in traffic planning, particularly for regional and local government agencies. The development and application of the mulatm-poldif modelling system are described. This system provides planners with a pc-based methodology for addressing traffic problems, and for assessing the environmental and energy implications of traffic management and land-use development proposals, at the local level. Both mulatm and poldif make extensive use of interactive graphics as a means to display and interpret the model outputs. This facility greatly enhances the usefulness of the models. An example of the application of the modelling system is given. This describes its use in evaluating the impacts of a major urban highway construction project.(a)