It is usually seen that land use changes with better transportation facility and at the same time improvement in transportation facility in an area has effect on land use. This is a kind of cycle which keeps on repeating itself. Here we have tried to explain the relationship between transit and land use in context of Transit Oriented Development. Transportation decisions affect land use patterns and resulting economic, social and environmental impacts. These include direct impacts on land used for transportation facilities, and indirect impacts caused by changes to land use development patterns.
Though, Transit Oriented Development (TOD) remains primarily a transport problem involving transit network design, effective transfer between nodes and scheduling, it is related directly to compact development principles as TOD efficiencies are achieved through densification of urban nodes (Cervero and Kockelman, 1997: 17) resulting in modal shift from automobile to transit, and mixed use development.(Cervero 1996; Nelson, Niles et al., 2001: 48)