The needs for digital models of real environment such as 3D terrain or cyber city model are increasing. Most of applications related with modeling and simulation require virtual environment constructed from geospatial information of real world in order to guarantee reliability and accuracy of the simulation. The most fundamental data for building virtual environment, terrain elevation and orthogonal imagery is acquired from optical sensor of satellite or airplane. Providing interoperable and reusable digital model is important to promote practical application of high-resolution satellite imagery. This paper presents the new research regarding representation of geospatial information, especially for 3D shape and appearance of virtual terrain. and describe framework for constructing real-time 3D model of large terrain based on high-resolution satellite imagery. It provides infrastructure of 3D simulation with geographical context. Web architecture, XML language and open protocols to build a standard based 3D terrain are presented. Details of standard-based approach for providing infrastructure of real-time 3D simulation using high-resolution satellite imagery are also presented. This work would facilitate interchange and interoperability across diverse systems and be usable by governments, industry scientists and general public.