The 20th century witnessed revolutionary developments in transportation technology with major impacts on the form and character of cities. Progress in increasing mobility has brought many benefits as well as serious problems, particularly in deterioration of livability and sustainability. Increase in auto ownership led to serious problems of chronic traffic congestion. Attempts to rebuild cities to provide full accommodation of private cars have led to serious problems of auto dependency and deterioration of cities. Experiences from recent decades have shown that urban transportation is much more complex than usually realized. Livable and sustainable cities require policies that lead to creation of a transportation system consisting of coordinated public transit and private cars, and encourages pedestrian environment and efficient, sustainable development. Great need for better understanding of the complex problems in implementing incentives and disincentives aimed at achieving intermodal balance is emphasized. Brief descriptions of cities which lead in achieving such livable conditions is followed by a summary of lessons and guidelines for the future.