This article brings the contemporary thinking and practice of Urban Environmental Management (UEM) to the solution of real problems in a major city of a developing country in Latin America. Such cities both face more immediate problems than the developed world and have fewer resources to deal with them. The study first considers the Latin American context and then reviews issues of poverty alleviation, industry, sewage and sanitation, water, energy, transportation and finance in Lima, Peru. Finally, it proposes a 5-year plan to help solve the urban environmental problems of Metropolitan Lima, an environmentally difficult, but important Latin American metropolitan area located between the Pacific Ocean and a hilly desert, utilizing a real world database and a limited budget.