diff --git a/config/base.toml b/config/base.toml
index 410dc11..dde6447 100644
--- a/config/base.toml
+++ b/config/base.toml
@@ -37,6 +37,19 @@ optional_columns = [
 ]
 n_matches = 10 # What is the maximum number of NTS matches we want for each SPC household?
 
+[feasible_assignment]
+# `actual_distance = distance * (1 + ((detour_factor - 1) * np.exp(-decay_rate * distance)))`
+#
+# `detour factor` when converting Euclidean distance to actual travel distance
+detour_factor = 1.56
+
+# `decay rate` is the inverse of the distance (in units of the data, e.g. metres) at which the
+# scaling from using the detour factor to Euclidean distance reduces by `exp(−1)`.
+#
+# 0.0001 is a good value for Leeds when units are metres, choice of decay_rate can be explored in an
+# [interactive plot](https://www.wolframalpha.com/input?i=plot+exp%28-0.0001x%29+from+x%3D0+to+x%3D50000)
+decay_rate = 0.0001
+
 [work_assignment]
 commute_level = "OA"
 use_percentages = true # if true, optimization problem will try to minimize percentage difference at OD level (not absolute numbers). Recommended to set it to true
diff --git a/config/base_all_msoa.toml b/config/base_all_msoa.toml
new file mode 100644
index 0000000..4593485
--- /dev/null
+++ b/config/base_all_msoa.toml
@@ -0,0 +1,78 @@
+[parameters]
+seed = 0
+ # this is used to query poi data from osm and to load in SPC data
+region = "leeds"
+# how many people from the SPC do we want to run the model for? Comment out if you want to run the analysis on the entire SPC populaiton
+number_of_households = 25000
+# "OA21CD": OA level, "MSOA11CD": MSOA level
+zone_id = "MSOA21CD"
+ # Only set to true if you have travel time matrix at the level specified in boundary_geography
+travel_times = false
+boundary_geography = "MSOA"
+# NTS years to use
+nts_years = [2019, 2021, 2022]
+# NTS regions to use
+nts_regions = [
+    'Yorkshire and the Humber',
+    'North West',
+    'North East',
+    'East Midlands',
+    'West Midlands',
+    'East of England',
+    'South East',
+    'South West']
+# nts day of the week to use
+# 1: Monday, 2: Tuesday, 3: Wednesday, 4: Thursday, 5: Friday, 6: Saturday, 7: Sunday
+nts_day_of_week = 3
+# what crs do we want the output to be in? (just add the number, e.g. 3857)
+output_crs = 3857
+
+[matching]
+# for optional and required columns, see the [iterative_match_categorical](https://github.com/Urban-Analytics-Technology-Platform/acbm/blob/ca181c54d7484ebe44706ff4b43c26286b22aceb/src/acbm/matching.py#L110) function
+# Do not add any column not listed below. You can only move a column from optional to require (or vise versa)
+required_columns = [
+    "number_adults",
+    "number_children",
+    "num_pension_age",
+]
+optional_columns = [
+    "number_cars",
+    "rural_urban_2_categories",
+    "employment_status",
+    "tenure_status",
+]
+# What is the maximum number of NTS matches we want for each SPC household?
+n_matches = 10
+
+[feasible_assignment]
+# detour factor when converting euclidian distance to actual travel distance
+detour_factor = 1.56
+# decay rate when converting euclidian to travel distance (0.0001 is a good value)
+# actual_distance = distance * (1 + ((detour_factor - 1) * np.exp(-decay_rate * distance)))
+decay_rate = 0.0001
+
+[work_assignment]
+commute_level = "MSOA"
+# if true, optimization problem will try to minimize percentage difference at OD level (not absolute numbers). Recommended to set it to true
+use_percentages = true
+# weights to add for each objective in the optimization problem
+weight_max_dev = 0.2
+weight_total_dev = 0.8
+# maximum number of feasible zones to include in the optimization problem (less zones makes problem smaller - so faster, but at the cost of a better solution)
+max_zones = 10
+
+[postprocessing]
+pam_jitter = 30
+pam_min_duration = 10
+# for get_pt_subscription: everyone above this age has a subscription (pensioners get free travel)
+# TODO: more sophisticated approach
+pt_subscription_age = 66
+# to define if a person is a student:
+# eveyone below this age is a student
+student_age_base = 16
+# everyone below this age that has at least one "education" activity is a student
+student_age_upper = 30
+# eveyone who uses one of the modes below is classified as a passenger (isPassenger = True)
+modes_passenger =  ['car_passenger', 'taxi']
+# yearly state pension: for getting hhlIncome of pensioners
+state_pension = 11502
diff --git a/scripts/3.1_assign_primary_feasible_zones.py b/scripts/3.1_assign_primary_feasible_zones.py
index 613e06f..392be8a 100644
--- a/scripts/3.1_assign_primary_feasible_zones.py
+++ b/scripts/3.1_assign_primary_feasible_zones.py
@@ -74,7 +74,11 @@ def main(config_file):
     logger.info("Creating estimated travel times matrix")
     # Create a new travel time matrix based on distances between zones
     travel_time_estimates = zones_to_time_matrix(
-        zones=boundaries, id_col=config.zone_id, time_units="m"
+        zones=boundaries,
+        id_col=config.zone_id,
+        time_units="m",
+        detour_factor=config.feasible_assignment.detour_factor,
+        decay_rate=config.feasible_assignment.decay_rate,
     )
     logger.info("Travel time estimates created")
 
@@ -203,6 +207,8 @@ def main(config_file):
         time_tolerance=config.parameters.tolerance_edu
         if config.parameters.tolerance_edu is not None
         else 0.3,
+        detour_factor=config.feasible_assignment.detour_factor,
+        decay_rate=config.feasible_assignment.decay_rate,
     )
 
     logger.info("Saving feasible zones for education activities")
@@ -230,6 +236,8 @@ def main(config_file):
         time_tolerance=config.parameters.tolerance_work
         if config.parameters.tolerance_work is not None
         else 0.3,
+        detour_factor=config.feasible_assignment.detour_factor,
+        decay_rate=config.feasible_assignment.decay_rate,
     )
 
     logger.info("Saving feasible zones for work activities")
diff --git a/scripts/3.3_assign_facility_all.py b/scripts/3.3_assign_facility_all.py
index 2099b9b..ba73bdf 100644
--- a/scripts/3.3_assign_facility_all.py
+++ b/scripts/3.3_assign_facility_all.py
@@ -307,7 +307,10 @@ def main(config_file):
             x_col="TripDisIncSW",
             y_col="length",
             x_label="Reported Travel Distance (km)",
-            y_label="Actual Distance - Euclidian (km)",
+            y_label="Actual Distance - Estimated (km)",
+            detour_factor=config.feasible_assignment.detour_factor,
+            decay_rate=config.feasible_assignment.decay_rate,
+            x_axis_max=50,
             crs=f"EPSG:{config.output_crs}",
             title_prefix=f"Scatter plot of TripDisIncSW vs. Length for {activity_type}",
             save_dir=config.output_path / "plots/assigning/",
@@ -330,8 +333,11 @@ def main(config_file):
             activity_type_col="destination activity",
             x_col="TripTotalTime",
             y_col="length",
-            x_label="Reported Travel TIme (min)",
-            y_label="Actual Distance - Euclidian (km)",
+            x_label="Reported Travel Time (min)",
+            y_label="Actual Distance - Estimated (km)",
+            detour_factor=config.feasible_assignment.detour_factor,
+            decay_rate=config.feasible_assignment.decay_rate,
+            x_axis_max=180,
             crs=f"EPSG:{config.output_crs}",
             title_prefix="Scatter plot of TripTotalTime vs. Length",
             save_dir=config.output_path / "plots/assigning/",
diff --git a/scripts/4_validation.py b/scripts/4_validation.py
index ab469cf..ba246ce 100644
--- a/scripts/4_validation.py
+++ b/scripts/4_validation.py
@@ -217,6 +217,8 @@ def main(config_file):
         start_wkt_col="start_location_geometry_wkt",
         end_wkt_col="end_location_geometry_wkt",
         crs_epsg=config.output_crs,
+        detour_factor=1.56,
+        decay_rate=0.0001,
     )
 
     # Plot: Aggregate
diff --git a/src/acbm/assigning/feasible_zones_primary.py b/src/acbm/assigning/feasible_zones_primary.py
index 9c29807..9ef9f26 100644
--- a/src/acbm/assigning/feasible_zones_primary.py
+++ b/src/acbm/assigning/feasible_zones_primary.py
@@ -77,6 +77,8 @@ def get_possible_zones(
     travel_times: Optional[pd.DataFrame] = None,
     filter_by_activity: bool = False,
     time_tolerance: float = 0.2,
+    detour_factor: float = 1.56,
+    decay_rate: float = 0.0001,
 ) -> dict:
     """
     Get possible zones for all activity chains in the dataset. This function loops over the travel_times dataframe and filters by mode, time of day and weekday/weekend.
@@ -106,6 +108,13 @@ def get_possible_zones(
         activity chain's travel time (which is stored in "TripTotalTime"). Allowable travel_times are those that fall in the range of:
         travel_time_reported * (1 - time_tolerance) <= travel_time_reported <= travel_time_reported * (1 + time_tolerance)
         Default = 0.2
+    detour_factor: float
+        The detour factor used to calculate travel distances between zones from euclidian distances.
+        Default = 1.56
+    decay_rate: float
+        The decay rate used to calculate travel times between zones from travel distances. Detours make up a smaller portion of
+        longer distance trips. Default = 0.0001
+
 
     Returns
     -------
@@ -137,7 +146,11 @@ def get_possible_zones(
     if travel_times is None:
         logger.info("Travel time matrix not provided: Creating travel times estimates")
         travel_times = zones_to_time_matrix(
-            zones=boundaries, id_col=zone_id, time_units="m"
+            zones=boundaries,
+            id_col=zone_id,
+            time_units="m",
+            detour_factor=detour_factor,
+            decay_rate=decay_rate,
         )
 
     list_of_modes = activity_chains["mode"].unique()
@@ -224,7 +237,7 @@ def get_possible_zones(
             travel_times_filtered_mode_time_day = travel_times_filtered_mode
             # if mode = car_passenger, we compare to the travel time for car (we don't
             # have travel times for car_passenger)
-            if mode == "car_passenger":
+            if mode in ("car_passenger", "taxi"):
                 activity_chains_filtered = activity_chains[
                     (activity_chains["mode"] == "car")
                 ]
diff --git a/src/acbm/assigning/plots.py b/src/acbm/assigning/plots.py
index 80a7bd1..c401d2b 100644
--- a/src/acbm/assigning/plots.py
+++ b/src/acbm/assigning/plots.py
@@ -11,6 +11,8 @@
 from matplotlib import patches as mpatches
 from shapely.geometry import LineString
 
+from acbm.assigning.utils import _adjust_distance
+
 
 def plot_workzone_assignment_line(
     assignment_results: pd.DataFrame,
@@ -387,7 +389,10 @@ def plot_scatter_actual_reported(
     title_prefix: str,
     activity_type: str,
     activity_type_col: str,
+    detour_factor: float,
+    decay_rate: float,
     crs: str,
+    x_axis_max: float,
     save_dir: str | Path | None = None,
     display: bool = False,
     y_scale: float = 1 / 1000,
@@ -405,7 +410,10 @@ def plot_scatter_actual_reported(
     - title_prefix: Prefix for the plot titles.
     - activity_type: Type of activity to plot.
     - activity_type_col: Column name for the activity type.
+    - detour_factor: Detour factor for the distance adjustment. (see `_adjust_distance`)
+    - decay_rate: Decay rate for the distance adjustment.
     - crs: Coordinate reference system (CRS) of the activities data.
+    - x_axis_max: Maximum value for the x-axis. (use to remove very high reported distances / times)
     - save_dir: Directory to save the plots. If None, plots are not saved.
     - display: Whether to display plots by calling `plt.show()`.
     """
@@ -434,6 +442,13 @@ def plot_scatter_actual_reported(
     # calculate the length of the line_geometry in meters
     activity_chains_plot["length"] = activity_chains_plot["line_geometry"].length
 
+    # Create a column for estimated distance
+    activity_chains_plot["length"] = activity_chains_plot["length"].apply(
+        lambda d: _adjust_distance(
+            d, detour_factor=detour_factor, decay_rate=decay_rate
+        )
+    )
+
     # Calculate the number of rows and columns for the subplots. It is a function of the number of modes
     nrows = math.ceil(len(activity_chains_plot["mode"].unique()) / 2)
     ncols = 2
@@ -460,6 +475,10 @@ def plot_scatter_actual_reported(
         p = np.poly1d(z)
         ax.plot(subset_mode[x_col], p(subset_mode[x_col]), "r--")
 
+        # Set x-axis limit
+        if x_axis_max:
+            ax.set_xlim(0, x_axis_max)
+
         ax.set_title(f"{title_prefix} for mode: {mode}")
         ax.set_xlabel(x_label)
         ax.set_ylabel(y_label)
diff --git a/src/acbm/assigning/utils.py b/src/acbm/assigning/utils.py
index c829cc1..d866d9e 100644
--- a/src/acbm/assigning/utils.py
+++ b/src/acbm/assigning/utils.py
@@ -286,10 +286,39 @@ def _get_activities_per_zone_df(activities_per_zone: dict) -> pd.DataFrame:
     return pd.concat(activities_per_zone.values())
 
 
+def _adjust_distance(
+    distance: float,
+    detour_factor: float,
+    decay_rate: float,
+) -> float:
+    """
+    Adjusts euclidian distances by adding a detour factor. We use minkowski distance
+    and a decay rate, as longer detour makes up a smaller proportion of the total
+    distance as the distance increases.
+
+    Parameters
+    ----------
+    distance : float
+        The original distance.
+    detour_factor : float
+        The detour factor to be applied.
+    decay_rate : float
+        The decay rate to be applied.
+
+    Returns
+    -------
+    float
+        The adjusted distance.
+    """
+    return distance * (1 + ((detour_factor - 1) * np.exp(-decay_rate * distance)))
+
+
 def zones_to_time_matrix(
     zones: gpd.GeoDataFrame,
     time_units: str,
     id_col: Optional[str] = None,
+    detour_factor: float = 1.56,
+    decay_rate: float = 0.0001,
 ) -> pd.DataFrame:
     """
     Calculates the distance matrix between the centroids of the given zones and returns it as a DataFrame. The matrix also adds
@@ -307,6 +336,8 @@ def zones_to_time_matrix(
         The name of the column in the zones GeoDataFrame to use as the ID. If None, the index values are used. Default is None.
     time_units: str, optional
         The units to use for the travel time. Options are 's' for seconds and 'm' for minutes.
+    detour_factor: float, optional
+        The detour factor to apply to the distance. Default is 1.56.
     Returns
     -------
     pd.DataFrame
@@ -323,6 +354,11 @@ def zones_to_time_matrix(
     distances = distances.stack().reset_index()
     distances.columns = [f"{id_col}_from", f"{id_col}_to", "distance"]
 
+    # adjust distance column by adding a detour factor
+    distances["distance"] = distances["distance"].apply(
+        lambda d: _adjust_distance(d, detour_factor, decay_rate)
+    )
+
     # replace the index values with the id_col values if id_col is specified
     if id_col is not None:
         # create a mapping from index to id_col values
@@ -449,7 +485,8 @@ def intrazone_time(zones: gpd.GeoDataFrame, key_column: str) -> dict:
     # Calculate the area of each zone
     zones["area"] = zones["geometry"].area
     # Calculate the average distance within each zone
-    zones["average_dist"] = np.sqrt(zones["area"]) / 2
+    # sqrt(area) / 2 would be radius
+    zones["average_dist"] = np.sqrt(zones["area"]) / 1.5
 
     # Mode speeds in m/s
     mode_speeds_mps = {
diff --git a/src/acbm/config.py b/src/acbm/config.py
index 1bb1e4e..477add7 100644
--- a/src/acbm/config.py
+++ b/src/acbm/config.py
@@ -40,6 +40,12 @@ class MatchingParams(BaseModel):
     chunk_size: int = 50_000
 
 
+@dataclass(frozen=True)
+class FeasibleAssignmentParams(BaseModel):
+    detour_factor: float
+    decay_rate: float
+
+
 @dataclass(frozen=True)
 class WorkAssignmentParams(BaseModel):
     use_percentages: bool
@@ -84,10 +90,13 @@ def serialize_filepath(self, filepath: Path | str | None) -> str | None:
 
 class Config(BaseModel):
     parameters: Parameters = Field(description="Config: parameters.")
+    matching: MatchingParams = Field(description="Config: parameters for matching.")
+    feasible_assignment: FeasibleAssignmentParams = Field(
+        description="Config: parameters for assignment of feasible zones."
+    )
     work_assignment: WorkAssignmentParams = Field(
         description="Config: parameters for work assignment."
     )
-    matching: MatchingParams = Field(description="Config: parameters for matching.")
     postprocessing: Postprocessing = Field(
         description="Config: parameters for postprocessing."
     )
diff --git a/src/acbm/validating/utils.py b/src/acbm/validating/utils.py
index 3ea2b40..dfc999f 100644
--- a/src/acbm/validating/utils.py
+++ b/src/acbm/validating/utils.py
@@ -2,6 +2,8 @@
 import pandas as pd
 from shapely import wkt
 
+from acbm.assigning.utils import _adjust_distance
+
 
 def process_sequences(
     df: pd.DataFrame,
@@ -76,6 +78,8 @@ def calculate_od_distances(
     end_wkt_col: str,
     crs_epsg: int,
     projected_epsg: int = 3857,
+    detour_factor: float = 1.56,
+    decay_rate: float = 0.0001,
 ) -> pd.DataFrame:
     """
     Calculate distances between start and end geometries in a DataFrame.
@@ -94,6 +98,11 @@ def calculate_od_distances(
     projected_epsg: int
         EPSG code for the projected CRS (default is 3857). We need a metric crs
         to calculte distances in meters.
+    detour_factor: float
+        Factor to adjust the estimated distance.
+    decay_rate: float
+        Decay rate for the distance adjustment. Detours are a smaller proportion of
+        the direct distance for longer trips.
 
     Returns
     -------
@@ -120,7 +129,17 @@ def calculate_od_distances(
     gdf = gdf.to_crs(epsg=projected_epsg)
     end_gdf = end_gdf.to_crs(epsg=projected_epsg)
 
-    # Calculate the distance between start and end geometries (in km)
-    gdf["distance"] = round(gdf.geometry.distance(end_gdf.geometry) / 1000, 1)
+    # Calculate the distance between start and end geometries (in m)
+    gdf["distance"] = gdf.geometry.distance(end_gdf.geometry)
+
+    # Estimate actual travel distance
+    gdf["distance"] = gdf["distance"].apply(
+        lambda d: _adjust_distance(
+            d, detour_factor=detour_factor, decay_rate=decay_rate
+        )
+    )
+
+    # convert distance to km
+    gdf["distance"] = round(gdf["distance"] / 1000, 1)
 
     return gdf
diff --git a/tests/test_assigning.py b/tests/test_assigning.py
index 76775cd..8cfa1f0 100644
--- a/tests/test_assigning.py
+++ b/tests/test_assigning.py
@@ -1,7 +1,8 @@
+import numpy as np
 import pandas as pd
 import pytest
 
-from acbm.assigning.utils import _map_day_to_wkday_binary
+from acbm.assigning.utils import _adjust_distance, _map_day_to_wkday_binary
 
 # applying to a single value
 
@@ -32,3 +33,17 @@ def test_map_day_to_wkday_binary_df_invalid():
     df = pd.DataFrame({"day": [1, 2, 3, 4, 5, 6, 7, 8]})
     with pytest.raises(ValueError, match="Day should be numeric and in the range 1-7"):
         df["wkday"] = df["day"].apply(_map_day_to_wkday_binary)
+
+
+def test_adjust_distance():
+    assert np.isclose(_adjust_distance(0, 1.5, 0.1), 0)
+    assert np.isclose(_adjust_distance(10000, 1.56, 0.0001), 12060.125)
+    assert np.isclose(
+        _adjust_distance(10000, 1.56, 0.0001),
+        10000 * (1 + ((1.56 - 1) * np.exp(-0.0001 * 10000))),
+    )
+    assert np.isclose(_adjust_distance(50000, 1.8, 0.0002), 50001.81599)
+    assert np.isclose(
+        _adjust_distance(50000, 1.8, 0.0002),
+        50000 * (1 + ((1.8 - 1) * np.exp(-0.0002 * 50000))),
+    )
diff --git a/tests/test_config.py b/tests/test_config.py
index 5ac5b86..759816e 100644
--- a/tests/test_config.py
+++ b/tests/test_config.py
@@ -11,4 +11,4 @@ def config():
 
 
 def test_id(config):
-    assert config.id == "e4589718b2"
+    assert config.id == "0ebb8c3ee7"