The purpose of this study is to analysis the concept of location efficiency, a base for the qualitative evaluation of TOD, and to propose the method of urban design for the improvement of location efficiency. Because of the environmental crisis by urbanization, sprawl and global warming, the importance of the solution through TOD has been increasing. For the future development of TOD, it becomes important to evaluate TOD qualitatively. From the study, it is grasped that location efficiency contains the concepts of value recapture, QoL and choice, financial return, and efficient regional land use and patterns. And the method of urban design for location efficiency is proposed as the followings: Form Based Zoning as land use plan, TOD and TOC model as node function, and street systems, mixed-use development, characteristic housing with various types, and networking of neighborhood facilities as place function.