In the development of augmented spaces, it is often difficult to perform frequent prototyping and testing. A range of related problems arise, especially when the cost of operation is high or when it is difficult to implement simulation in advance within the installation space. To address these problems, the authors created an integrated environment for iteration-based development of augmented spaces that allows interactive system developers to create systems using iterative virtual simulation and trial-and-error. With this system, hybrid prototyping using both virtual and miniature simulation can be performed. This paper introduces virtual simulation based on visualization. The authors studied four prototyping and deployment processes for two interactive public displays using both methods in order to clarify their characteristics, and the respective merits and demerits were discussed. Based on the results, a prototyping strategy for interactive public displays was proposed. Basic software operations and ideal positioning of input and output devices were investigated within virtual space, problems arising from differences between virtual and real space were clarified within miniature model space, and the addition of features to the code and related adjustment were iterated within both spaces.