The New Jersey Highlands Region covers over 800,000 acres in the northwest part of the state. The Highlands Water Protection and Planning Act divides this region into two zones with vastly different rules.
The Preservation Area
In this zone, development is virtually frozen. The rules are incredibly strict:
- Septic Density: You often need 25-88 acres of land for a single septic system.
- Impervious Cover: Limited to 3% of the lot.
- Exemptions: Very limited. Existing single-family homes can add small additions, but major subdivisions are effectively banned.
The Planning Area
Here, the goal is "smart growth." Development is encouraged in centers with existing infrastructure (sewer/water) and discouraged in greenfields. Municipalities in the Planning Area can choose to "opt-in" to the Highlands Regional Master Plan. If they do, they get legal shield protection and grant money, but they must conform their zoning to the Council's standards.
Highlands Development Credits (HDC)
To compensate landowners in the Preservation Area who lost their development rights, the state created the HDC program. You can sell your "credits" to developers in the Planning Area or other growth zones who want to increase their density. It's a market-based mechanism, but the market has been historically illiquid.
Redevelopment Opportunities
The best opportunities in the Highlands are in Highlands Redevelopment Areas. These are previously developed sites (brownfields or grayfields) where the Council encourages reuse. Approvals here are streamlined compared to greenfield sites.
Conclusion
If a site is in the Preservation Area, it's likely a conservation play, not a development play. In the Planning Area, look for towns that have designated centers and existing sewer capacity.