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In this paper, we investigate the usefulness of high-resolution multispectral satellite imagery for classification of urban and suburban areas and present a fuzzy logic methodology to improve classification accuracy. Panchromatic and multispectral IKONOS image datasets are analyzed for two urban locations in this study. Both multispectral and pan-sharpened multispectral images are first classified using a traditional maximum-likelihood approach. Maximum-likelihood classification accuracies between 79% to 87% were achieved with significant misclassification error between the spectrally similar Road and Building urban land cover types. A number of different texture measures were investigated, and a length-width contextual measure is developed. These spatial measures were used to increase the discrimination between spectrally similar classes, thereby yielding higher accuracy urban land cover maps. Finally, a hierarchical fuzzy classification approach that makes use of both spectral and spatial information is presented. This technique is shown to increase the discrimination between spectrally similar urban land cover classes and results in classification accuracies that are 8% to 11% larger than those from the traditional maximum-likelihood approach.