Considerable attention has been focused on the relationship between transportation costs and land values in urban areas, but little research has been conducted on the other factors that affect land values. The study in this paper should concentrate on any one of a number of different types of public projects, but we shall be concerned with the effect of airports on land values. At the public level, attention has frequently been drawn to the effects of airports. On the one hand, one cannot help but notice the substantial residential and commercial development in areas immediately adjacent to airports. On the other hand, concerned residents have often been adamant in their opposition to airport expansion;some have attempted either to have airport facilities moved or to mitigate their effects by other means. If the real estate market reflects preferences for particular land, the former might be interpreted to suggest the positive influence, while the latter suggests the negative influence of airports on land values.