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There have been two major classes of urban area models: non-spatial models of income, employment, and structural change; and land use models usually oriented toward transportation planning. The article constructs a model of the Boston metropolitan area, Massachusetts, that contains three major parts: a macroeconomic non-spatial model of output, employment, and income distribution; a model of long-term adjustments of population and capital stocks; and a model of spatial allocation. The long-term adjustments consist of population change and migration and capital investment in industry, which respond partly to conditions in Boston and partly to conditions within the rest of the nation. Public services and tax rates (which may later be modelled as endogenous) affect the location of activities. Feedback from the spatial-allocation submodel to the macro and long-term adjustment submodels occurs through housing and land prices and average tax rates. Supply adjustment combines the effects of past and present circumstances and actions. Each owner of existing property and each prospective new investor examines the expected profitability of an additional structure of each type in each zone.