Abstract. The rapid growth of transportation in developing countries brings advantages and disadvantages. One of the disadvantages gives negative impacts, such as traffic jam, which directly decreases a highway performance as well as increases air and noise pollution. A suitable policy has not been formulated to overcome the traffic jam in most highways in big cities. However, traffic demand management regard to noise pollution is required in most cities of developing countries, particularly Surabaya City, as a case study area. This study aims to understand the influence of saturated flow of highway on noise pollution for several types of road corridors. The results reveal that saturated flow of highway has a significant effect on noise pollution. By examining the alternatives of space-transport development strategies, the intention is to reduce noise pollution together with decreasing traffic jam due to decreasing the number of light vehicles. This research proposes the improvement of public transport (PT) by planning a Mass Rapid Transit ((MRT). In addition, a structure of compact zones is designed as urban spatial strategy alternatives. Its substantially reduction is achieved with the design of improvement of PT systems and compact zone. The best option for reducing noise pollution level, the implementation of an integrated space-transport development strategy, is then recommended.