Bus　transit　network　design　is　one　of　the　most　important　strategic　planning　problems　in　urban　public　transportation,　which　is　to　define　the　number　of　bus　lines　and　their　operating　paths　such　that　a　given　origin-destination　demand　can　be　covered.　Although　rapid　and　reliable　bus　transit　service　has　increasingly　become　one　of　the　most　key　and　important　factors　attracting　passengers　to　travel　through　buses,　especially　for　large　cities　in　China,　most　of　the　studies　in　the　literature　ignore　such　issue　along　with　bus　transit　network　design.　This　study　investigates　a　new　bi-objective　bus　transit　network　design　problem　taking　into　account　bus　lane　reservation　aiming　to　provide　rapid　and　reliable　transit　service.　Moreover,　both　the　total　travel　time　of　all　passengers　including　penalties　for　the　transfers　and　the　total　negative　impact　caused　by　bus　lanes　are　minimized.　For　the　problem,　a　bi-objective　integer　non-linear　programming　model　is　first　developed.　Then,　it　is　equivalently　reformulated　as　an　integer　linear　program,　which　is　further　tightened　by　adding　explored　valid　inequalities.　The　problem　is　shown　to　be　NP-hard.　Finally,　an　exact　epsilon-constraint　method　is　proposed　to　yield　the　Pareto　front.　Extensive　numerical　experiments　on　benchmark　and　randomly　generated　instances　confirm　the　effectiveness　and　efficiency　of　the　proposed　approach.