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Mediterranean environments are characterized by high spatial and temporal heterogeneity due to their climatological, lithological, soil and vegetation geo-diversity and their high population density which cause growing land-use transformations at the rural-urban fringe. Remote sensing mapping and monitoring land cover in these environments under such conditions is a challenging task. Instead of the common per pixel approach we suggest combining application of an object-oriented classification based on image objects separation through edge detection with unsupervised classification. The main elements of our methodology are: (1) separating image areas into vegetation/ non-vegetation regions utilizing NDVI threshold; (2) calculation of the spatial variance at different bands; (3) image objects extraction through enhancement of the differences between edge pixels and regions of homogeneity; (4) per-object classification for the homogenous areas; (5) overlaying large unclassified image areas by the results of ISODATA (Iterative Self-Organizing Data Analysis) unsupervised classification. Our methodology was applied on multi-spectral images acquired by the VENμS remote sensing system. The study area consists of a typical rural area in semi-arid climate regions undergoing increasing urbanization. Six test areas were selected representing different spatial combinations of natural/ planted forests, agriculture and built-up land-use/ land cover types. While bare fields were poorly classified, areas of low vegetation cover were classified with producer/user accuracies below 60%, built-up areas and roads, cultivated areas, shrublands and bata (dwarf-shrubs) and rocky areas gained good producer/ user classification accuracies.