Urban expansion is a major driving force altering local and regional hydrology and increasing non-point source (NPS) pollution. To explore these environmental consequences of urbanization, land use change was forecast, and long-term runoff and NPS pollution were assessed in the Muskegon River watershed, located on the eastern coast of Lake Michigan. A land use change model, LTM, and a web-based environmental impact model, L-THIA, were used in this study. The outcomes indicated the watershed would likely be subjected to impacts from urbanization on runoff and some types of NPS pollution. Urbanization will slightly or considerably increase runoff volume, depending on the development rate, slightly increase nutrient losses in runoff, but significantly increase losses of oil and grease and certain heavy metals in runoff. The spatial variation of urbanization and its impact were also evaluated at the subwatershed scale and showed subwatersheds along the coast of the lake and close to cities would have runoff and nitrogen impact. The results of this study have significant implications for urban planning and decision making in an effort to protect and remediate water and habitat quality of Muskegon Lake, which is one of Lake Michigan's Areas of Concern (AOC), and the techniques described here can be used in other areas.