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Abstract: The study compares two alternative ways of reducing congestion in Baton Rouge, Louisiana: construction of a northern bypass and improvement of the existing road network. Baton Rouge provides a very interesting case study because it is ranked the worst for congestion among medium sized urban areas in the nation. A travel demand model is used to estimate total travel for each alternative as well as for the status quo. Reduction in total travel resulting from implementation of each alternative over the status quo is evaluated in terms of the estimated change in vehicle miles traveled (VMT) and vehicle hours traveled (VHT). The reduction in travel is compared with the estimated construction cost of each alternative. The analysis revealed that improving the existing road network was more effective in reducing traffic congestion and cost approximately one-third of the cost of the northern bypass. Applying tolls on the bypass did not improve the situation and further proved the superiority of the improved network in reducing traffic congestion. [Copyright &y& Elsevier]