The implementation of Distributed Generation (DG) may lead to increased pollutant emissions that adversely affect air quality. This work presents a systematic methodology to characterise DG installation in urban basins. First, a set of parameters that characterise a DG implementation scenario is described. Second, a general approach using Geographic Information Systems (GIS) data is presented. Third, the methodology is demonstrated by application to the South Coast Air Basin (SoCAB) of California. Results show that realistic scenarios in the SoCAB concentrate DG technologies nearby industrial zones and introduce pollutant mass increments no larger than 0.43% with respect to baseline emissions. © 2008 Inderscience Enterprises Ltd.