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As the rapid development of China's highway construction, the rationality of the design of public transport routes has to face a severe test, since a static bus system can not keep up with the social life nowadays. In this article, we will talk about using the ArcGIS Server technology to develop a dynamic bus monitoring and scheduling system, which combines 3S technology (GPS, RS, GIS) together, to accomplish the real-time location, information collection and scheduling functions to the buses. Through the 3G network, this system can upload the location information in bus GPS chip to the spatial database. It can publish service functions by the map of ArcGIS Server, which makes it convenient to check the real-time status of each bus. Also, with the strong distance calculating ability of ArcGIS, we can calculate the bus arrival time in advance, so the foreground of the system can manage and upload graphics and video information to accomplish monitoring and scheduling. The establishment of this system aims at improving the service quality of the public transportation system for the convenience of the public, and also the dynamic tracking of buses breaks the routine that using static text prompts with conventional signs mode, while greatly easing the difficulties of public travelling. The increasingly improvement of public transportation helps accelerate the economic construction in our nation, and enhance the trade between the city. A convenient transportation system will also improve the flow of passenger traffic in tourist cities, which is of great significance to build our nation.