TOD is a planning and design trend that seeks to create walk-able communities centered on a transportation node (transit station, transit route, or bus stop).
The concept of the transportation node is an area of increased density near public transit. TOD communities will include certain features that encourage the use of public transit such as pedestrian facilities, improved pedestrian crossings, reduced parking ratios, and the tapering down of buildings as they become more distant from the transportation node.
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Transit Oriented Development
American Public Transportation Association:
TOD Resource Guide