The primary purposes of this study are to identify the characteristics of land development in urban area through GIS and remote sensing techniques and to provide useful implications for urban spatial policy. To perform these tasks, Daegu metropolitan city and its vicinities were selected as a study area, and remote sensing data and attributed data were collected, organized and analyzed. This study focuses on the following three steps. First, it identifies the characteristics of land development in urban areas by utilizing multi-temporal satellite image data (Landsat TM, 1980, 1985, 1990, 1995, 2000 and 2005). Second, it tries to find an answer on a critical question concerning land use conversion, i.e., which land use leads expansion of urban area? Third, it derives implications for urban spatial policies based on these findings. The characteristics of the urban extents tell us that the main land use converted into urban use from non-urban uses is green areas. The public sector, central and local governments, leads the land use conversions of suburban lands as exclusive legal body to issue permission of land use change. Based on these findings, this study concludes that the more systematic and technically advanced management tools should be utilized for more effective spatial management for urban growth.