The research undertook a case-study approach by developing and assessing land use scenarios for the future growth of Caia, a strategically-located and fast-developing town in rural Mozambique. The effects of alternative spatial plan policies were assessed against a set of environmental performance indicators, including deforestation, loss of agricultural land, encroachment of flood-prone areas and wetlands and access to water sources. In this way, critical environmental effects related to the implementation of each policy were identified and discussed, suggesting possible strategies to address them.