Tehran, the capital of the IslamicRepublic of Iran (IRI), is located in the north of thecountry with a population of about 8.5 million. Thepopulation can reach over 12.5 million during the day, withpeople from nearby cities commuting daily to Tehran forwork. There are more than 17 million vehicular trips per dayin Tehran, and many of the vehicles have outdatedtechnology. Thus, the air in Tehran is amongst the mostpolluted in the world. Topography and climate add to thepollution problem. Tehran is at a high altitude and issurrounded by the Alborz Mountain Range, which trapspolluted air. Temperature inversion, a phenomenonparticularly occurring during the winter months, preventsthe pollutants from being diluted. Several recent trendsindicate that reducing air pollution will not be straightforward: rapid population growth (partially due to migrationfrom other cities), industrial development, urbanization,and increasing fuel consumptionare pressure points for cleanair in Tehran. To design an effective approach to airpollution management, it is important to diagnose theproblem, determine its sources, and identify affordable andsustainable solutions. This discussion paper provides anoverview of the seriousness of air pollution in the city ofTehran; quantifies its impact in terms of health andeconomic costs; identifies the sources of pollution; and,finally, provides a framework to addressthe problem.