This paper describes a planning methodology aimed at implementing an efficient Demand Responsive Transportation System (DRT). Past experience has shown that economic feasibility is a major obstacle to the successful implementation of a DRT system. Thus, the emphasis of this methodology is on the identification and evaluation of the efficient range of the costs and performance characteristics of the designed system. The model was applied to evaluate a DRT system designed for a new residential area. Following the description of the model, the results from this empirical application are discussed.