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Advanced Traffic Management Systems (ATMS) provide the means for local transportation officials to monitor traffic conditions, adjust traffic operations, and respond to accidents. By providing early traffic incident detection and management, and by redistributing traffic to less congested portions of the highway network, ATMS can influence vehicle operators' route choices. COMPASS, a state-of-the-art advancedtraffic managementsystemimplemented in the Metropolitan Toronto area, has adopted most of the Intelligent Vehicle-Highway Systems (IVHS) technologies. This paper describes the logic and implementation of the automatic incident detection for COMPASS. The purpose of incident detection is to identify the potential occurrence of incidents in a traffic stream by analyzing the flow characteristicsof the traffic stream. The output of the incident detection function will form the basis for incident verification by the operator and implementation of traffic response plans.