The Dual Mode Transit System is capable of providing the same passenger and cargo service on ordinary streets as is provided by conventional automobiles, and in addition can provide fully automatic operation on exclusive guideways. Therefore, the service network of the Dual Mode Transit System can be varied to accommodate the scale of a project area. This means that the Dual Mode Transit System is best suited to providing a means of transportation for new development areas. This paper first outlines the Dual Mode Bus System which is now in its final stage of development, after a four-year technical development period which began in March, 1973. Secondly, the main theme of this paper deals with a case study in which the Dual Mode Bus System is introduced in the Kanazawa area of suburban Yokohama, and is compared with two other systems. The case study is concerned with a Dual Mode Transit plan which utilizes 40-passenger buses in a new development area of 6,600,000 m2, and which is to be introduced in two stages. The detailed computer simulation indicates the estimates of the utilization rate and operating characteristics of the Dual Mode Bus System. It reveals that in the fifteenth year after the service begins, operation could be brought to high efficiency, such as the average speed being 22 km/h, the waiting time being approximately 1.7 minute, etc. Furthermore, the economical evaluation indicates that the Dual Mode Bus System offers stable operation in terms of economy as well as operational service. In addition to the above comparison, a comprehensive evaluation was made considering the impact exerted on regional residents. Results indicate that the Dual Mode Bus System is the most preferable of the three transportation systems.