The development of urban models has been prompted by the need for informed policy recommendations from urban planners and informed decisions by policymakers. While continuous development and application has been pursued extensively in advanced countries, there have been little efforts in the developing regions of the world. This is mainly due to serious data limitations and the presence of complex modeling issues. The imperative to develop integrated urban models for developing countries is growing with the need to estimate future urban growth and forecast possible impacts of various urban policies. The study pursues the development of integrated urban models for developing countries by tackling key urban issues and modeling constraints. This paper presents the on-going development of a spatial microsimulation model for Metro Manila which provides a powerful and flexible approach for overcoming data and modeling problems. Finally, this paper presents extensions to model location choices of households under a spatial microsimulation
framework.