There are many major transportation development projects under planning and construction in Taiwan. Transportation systems will be facing a dramatic change in the future. However, the conventional travel demand analysis fails to give adequate consideration to such change. The aim of this paper is to develope a model which shows how intercity trip generation and distribution are affected by reducing travel time between cities. The model based on Intra-provincial Trip Distribution (IPTD) model. The parameters in the model are calibrated by nonlinear approach. Two dummy variables, urban hierarchy and travel time threshold, are found to play key role in long distance travel decisions. In addition, the research compares the results of IPTD model and conventional model. The comparisons involve calibration of the direct demand model using same set of variables but different model structure.