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Population is the main focus in all studies within the framework of geography because population and basic natural resources are intimately related to each other and with the prospects of urban development and quality of the environment in a region. Therefore, the study and analysis of population growth and distribution in the urban development is the logical starting point for any research of the present nature. Lahore is 2nd largest city of Pakistan in terms of its share in total population of the country. The total population of Lahore was 6,318,745 as per 1998 Census. Systematic monitoring of the urban development, proper management of the City and planned future development would lead to improvement in the living standards and environmental conditions of the millions of people living in the city of Lahore. Remote sensing along with the GIS technology can be used effectively and economically in the analysis and the inventory of urban development and land use and land cover study of the urban settlements. It provides database for the site suitability for further urban development and growth corridors in this fast growing metropolis of the country.