Abstract: A “smart parking” system and method for an urban environment based on a dynamic resource allocation approach. The system assigns and reserves an optimal resource (parking space) for a discrete user based on the user's objective function that combines proximity to destination with parking cost, while also ensuring that the overall parking capacity is efficiently utilized. The solution of each Mixed Integer Linear Program (MILP) is an optimal allocation based on current state information and subject to random events such as new user requests or parking spaces becoming available.