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While facing the needs for Vehicle Infrastructure Integration (VII) applications in traffic management, the paper deals with the problem of locating Road Side Units (RSU) for VII deployment. After analyzing the difference between traditional problems of locating traffic information detector and the problem of RSU location, a significance ranking model for RSU localization and three kinds of Significance Degree (SD) computing strategies are put forward. A VII simulation environment for the purpose of RSU localization optimization within VISSIM microscopic traffic simulation software is established developing add-on functions using VISSIM's Component Object Model (COM). A VII test bed of the Olympic Park network in Beijing is taken as an example to evaluate the performance of RSU localization model. The results of simulation experiments indicate that the mixed SD strategy considering both speed and route monitoring is superior to the other two SD strategies. Then, the impact of RSU number and OBE market penetration rate on the evaluation measures of traffic monitoring are studied with reference to the proposed mixed SD strategy. In this case, the evaluation measures of optimized RSU configurations generated by the ranking algorithm are always better than those of random RSU configurations. In addition, the benefits of optimized RSU configurations increase along with RSU number and market penetration rate while the benefits of random RSU configurations are more fluctuant. [ABSTRACT FROM PUBLISHER]