The principles and procedures for integrated environmental assessment(IEA) based on the specific urban conditions and Chinese characteristics have been developed. The development processes and the general principles and procedures are presented in this paper. Indicators and methods for IEA may vary from case to case, but guidelines for selection of indicators and methods may be applicable for a specific case, so they are also introduced. Although great progress has been made in IEA, there is still a lot for future development. Prospects are presented as follows: (1) IEA at strategic level; (2) mechanisms for public involvement; (3) post-project analysis; (4) cumulative impact assessment; and (5) application of new approaches such as expert system and GIS in IEA.