The process of urbanization transforms natural landscape into impervious land cover, affecting the ecosystem health of receiving water bodies and downstream communities by changing the timing and volumes of the natural flow regime. Best management practices (BMP) and low impact development (LID) are a set of mitigating measures that can be considered for watershed management to mitigate the hydrologic consequences of urbanization. This research develops a methodology to select sites for placing LID technologies, namely rainwater harvesting and permeable pavements, to reduce hydrologic impacts, measured as alterations to the peak flow while meeting a prespecified budget. A simulation-optimization methodology couples a genetic algorithm with a hydrologic model, a hydraulic model, and curve number-based models of LID technologies. The trade-off between costs and peak flow alteration is explored by optimizing LID placement under varying budget constraints. Strategies that combine a detention pond and LID are explored and optimized for a spectrum of design storms, including 2-, 10-, and 100-year events. Trade-offs among management strategies that are designed to control storms of different sizes are analyzed. The simulation-optimization framework and methodology is applied for a small watershed on the Texas A&M University campus. DOI: 10.1061/(ASCE)WR.1943-5452.0000251. (C) 2013 American Society of Civil Engineers.