The U.S. Environmental Protection Agency (EPA) has initiated a research project to develop an evaluation framework for the optimal placement of best management practices (BMPs) options at strategic locations in mixed land use urban watersheds. The integrated watershed-based stormwater management decision-support framework (ISMDSF) is to be based on a geographical information system (GIS) watershed/BMP database, cost, and hydrologic, hydraulic, and water quality modeling to achieve desired water quality objectives. The initial phase of this research is expected to be completed in early 2005. While this work is ongoing and many tasks have yet to start, this paper presents the project background, rationale, approach, initial review findings of watershed and BMPs models, and the preliminary design recommendations of the framework.