In a rapidly transitioning China, urban land use has changed dramatically, both spatially and in terms of magnitude; these changes have significantly affected the natural environment. This paper reports the development of an Integrated Environmental Assessment of Urban Land Use Change (IEA-ULUC) model, which combines cellular automata, scenario analysis, and stochastic spatial sampling with the goal of exploring urban land-use change, related environmental impacts, and various uncertainties. By applying the IEA-ULUC model to a new urban development area in Dalian in northeastern China, the evolution of spatial patterns from 1986 to 2005 was examined to identify key driving forces affecting the changing trajectories of local land use. Using these results, future urban land use in the period 2005-2020 was projected for four scenarios of economic development and land-use planning regulation. A stochastic sampling process was implemented to generate industrial land distributions for each land expansion scenario. Finally, domestic and industrial water pollution loads to the ocean were estimated, and the environmental impacts of each scenario are discussed. The results showed that the four urban expansion scenarios could lead to considerable differences in environmental responses. In principle, urban expansion scenarios along the intercity transportation rail/roadways could have higher negative environmental impacts than cluster-developing scenarios, while faster economic growth could more intensely aggravate the environment than in the moderate growth scenarios.