There has been increased interestthroughout the world in improving transit services throughthe introduction of intelligent transportation systems(ITS). ITS can be defined as a set of technologies intendedto improve the quality or efficiency of transit servicesprimarily by providing the appropriate information at theappropriate time in an appropriate form to transit staff andtransit customers. The World Bank has participated in thefinancing of several ITS systems in China. Given thecomplexity of these projects and their potential fordramatic transformation of transit operating agencies, it isworthwhile to provide some guidance to senior staff fromtransit systems contemplating ITS projects as well asdecision-makers external to the transit operatingorganizations The World Bank commissioned a series of threepapers to assist in this effort. This first paper is adescription of the key ITS applications for transitoperations and where they are most beneficial. This secondpaper reviews a number of previous installations and reportson lessons learned, both positive and negative, in the hopeof maximizing the effectiveness of technology in improvingtransit services. The third is a set of Terms of Reference(TOR's) for professional services associated with ITSproject management to assist in project implementation thesepapers focus more on the organizational and planning issuesassociated with ITS. This guidance is primarily directed tobus transit operators, including those with bus rapidtransit (BRT) services. However, the sections on farecollection and traffic signal priority may have someapplication to streetcar or light rail transit. Vehiclelocation on such systems is usually accomplished by a signalsystem used to control switching between tracks. This noteserves as an introduction to the topic of ITS for transit.In it, we introduce the various ITS technologies, identifytheir benefits, and the range of applications where theiruse is most appropriate. The interaction among technologiesin providing information useful to transit system managementis also discussed. Of equal importance, we have found thatsuccessful implementation of ITS depends not only on thetechnology but also on the institutional environment inwhich they are implemented. Since the introduction oftechnology fundamentally changes the nature of traditionalmanagerial and staff processes, organizations which are ableto embrace change and alter their methods of doing businesswill be more likely to fully benefit from theseinstallations. Accordingly, this paper discusses some of theinstitutional and organizational factors associated with ITSimplementation. From the outset, this note does not advocatefor the implementation of specific ITS technologies.