An emission inventory containing emissions from traffic and other sources was complied. Based on the analysis, Carbon Monoxide (CO) emissions from traffic play a very important role in CO levels in Chiang Mai area. Analysis showed that CO emissions from traffic during rush hours contributed approximately 90% of total CO emissions. Regional Atmospheric Modeling System (RAMS) was applied to simulate wind fields and temperatures in the Chiang Mai area, and eight cases were selected to study annual variations in wind fields and temperatures. Model results can reflect major features of wind fields and diurnal variations in temperatures. For evaluating the model performance, model results were compared with observed wind speed, wind direction and temperature, which were monitored at a meteorological tower. Comparison showed that model results are in good agreement with observations, and the model captured many of the observed features. HYbrid Particle And Concentration Transport model (HYPACT) was used to simulate CO concentration in the Chiang Mai area. Model results generally agree well with observed CO concentrations at the air quality monitoring stations, and can explain observed CO diurnal variations.