Highway improvements such as bypass construction typically are motivated by a desire to improve the flow and safety of travel. But, given the importance of travel, transportation improvement projects often can affect the local economy and quality of life. This study assesses these potential impacts. The study was conducted by the University of Kentucky Center for Business and Economic Research, as part of a subcontract with the Kentucky Transportation Center. The study is one component of a larger Kentucky Transportation Center study entitled Planning Decisions Related to Bypass Construction, Life-Cycle Costs of Access Control, and Safety Impacts of Rural Road Construction, which is being conducted for the Kentucky Transportation Cabinet.