The prevalence of urinary incontinence (UI) among urban older Latinos is high. Insight into etiologies and contributing factors to the development of this condition is needed. This longitudinal cohort study identifies correlates of 1-year incidence of UI in community-dwelling Latino seniors participating in a senior-center-based physical activity trial in Los Angeles, California. Three hundred twenty-eight Latinos aged 60 to 93 years participating in Caminemos, a randomized trial to increase walking, were studied. Participants completed an in-person survey and physical performance measures at baseline and 1-year. UI was measured using the International Consultation on Incontinence item: “How often do you leak urine?” Potential correlates of 1-year incidence of UI included sociodemographic, behavioral, medical, physical, and psychosocial characteristics. The overall incidence of UI at 1-year was 17.4%. Incident UI was associated with older age, low levels of baseline activity of daily living impairment, health-related quality of life (HRQoL), and mean steps per day. Incident UI was also associated with increased depressive symptoms. Multivariate logistic regression models revealed improvement in physical performance score (odds ratio (OR) = 0.69, 95% confidence interval (CI) = 0.50–0.95) and highbaseline HRQoL (OR = 0.60, 95% CI = 0.40–0.89, and OR = 0.62, 95% CI = 0.43–0.91) were independently associated with lower rates of 1-year incident UI. An increase in depressive symptoms at 1-year (OR = 4.48, 95% CI = 1.02–19.68) was independently associated with a higher rate of incident UI.I-year UI incidence in this population of urban older Latinos participating in a walking trial was high, but was lower among those who improved their physical performance. Interventions aimed at improving physical performance may help prevent UI among older Latinos.