Antiretroviral therapy (ART) is becoming available in South Africa. Demand will exceed supply; thus, difficult decisions will have to be made in allocating ART. The majority of those treated for HIV are likely to be in cities, because health infrastructure and personnel are concentrated in urban centers. We predict the epidemiological impact of drug allocation strategies (DAS) by using a spatially explicit model that links urban and rural epidemics. We parameterize our model by using data from the KwaZulu-Natal province in South Africa. We model the South African government's treatment plan from 2004 -2008, and we predict the consequences of one DAS that allocates drugs only to Durban and of two DAS that allocate drugs to both urban and rural areas. All three strategies would treat 500,000 people by 2008. Not surprisingly, the Durban-only DAS would prevent the greatest number of infections (an additional 15,000 infections by 2008). However, it may have been expected that this DAS would generate the highest levels of transmitted resistance, because it concentrates ART in one location. Paradoxically, we found that this DAS would generate the lowest levels of transmitted resistance. Concentrating treatment in Durban would also avert the greatest number of AIDS-related deaths. We discuss the difference between using the principle of treatment equity versus using the principle of utilitarianism͞ efficiency to allocate ART. Decisions about allocating scarce drugs should consider treatment equity as well as epidemiological consequences. Notably, a Durban-only DAS would lead to new disparities in healthcare between urban and rural areas in KwaZulu-Natal. (Fig. 1a). This plan will result in 50% of PLWHA receiving treatment by 2008. To predict the epidemiological consequences of different drug allocation strategies (DAS), we modeled the South African government's treatment plan from 2004-2008 (2) (Fig. 1a). The World Health Organization has outlined four ethical principles that should govern the rollout of antiretrovirals in Africa; all four of these ethical principles are important for consideration in decision making by government health officials. We predict the epidemiological impact of DAS if one of these ethical principles is considered: namely, the ethical principle of utilitarianism͞efficiency. We evaluated three DAS: two urban-rural strategies (strategies 1 and 2) and an urban-only strategy that would treat only PLWHA in Durban (strategy 3). We evaluated which of the DAS would have the maximum impact on reducing the HIV epidemic by 2008 in terms of reducing the incidence rate, minimizing transmitted resistance, and decreasing the AIDS-related death rate.We modeled heterogeneity in HIV transmission dynamics by developing a spatially explicit model of KwaZulu-Natal that linked the urban epidemics with the surrounding rural epidemics (Fig. 1b); for the mathematical structure of our model and our analytical techniques, see Methods. Our spatially explicit model builds to some degree on our earlier models (3-7) but ...