What You Need to Know About Water Mitigation

Real Estate Broker/Owner with Beam & Branch Realty TREC #547752

What You Need to Know About Water Mitigation

Tranquility Ranch Wetlands

First of all, what is mitigation anyway? This is a fairly new issue being implemented by the EPA just a few years ago in 2008. This Act basically helps to protect wetland areas and to bring them back to their natural state.

This is the definition directly from the EPA's website:  

The White House Council on Environmental Quality (CEQ) has defined mitigation in its implementing regulations for the National Environmental Policy Act to include avoiding, minimizing, rectifying, reducing over time, and compensating for impacts.  The Clean Water Act Section 404(b)(1) Guidelines, developed by EPA in coordination with the U.S. Army Corps of Engineers and issued in 1980, establish substantive environmental criteria which must be met for activities to be permitted under Clean Water Act Section 404.  The types of mitigation enumerated by CEQ are compatible with the requirements of the Guidelines; however, as a practical matter, they can be combined to form three general types of mitigation: avoidance, minimization, and compensatory mitigation. 


Currently I have a large tract of land that borders approximately 3 miles of wetland, creek areas. The owner's of the land have been working on a feasibility study for a proposed Mitigation Bank for their property for the past 2 years. There are a lot of regulations, studies and hearings that take place to determine if a tract of land is eligible for a mitigation bank.


If a mitigation bank is awarded, credits are determined in which future developers, roadways, etc. must purchase depending on the size and scope of their project. If a tract of land is awarded a bank, as the area around the land develops, the owner's of the land can benefit from the sale of these credits. Some call this a legacy trust.  The initial study my landowners have is 44 pages long.


Tracts of land that are full of wetlands or referred to as "bottom lands" in our area were once thought to be not very valuable. Historically, these types of lowlands sold for pennies on the dollar. Now of course, the value in owning these types of properties has changed due to the potential for a mitigation bank.


When selling a tract of land that has been awarded a mitigation bank will most certainly change the pricing of the land. Based on the number of credits awarded along with currently and future development in the area will need to be evaluated in determining a price for the property.


Mitigation banks are a complicated issue therefore, when dealing with this type of transaction it will be important to have legal representation with an attorney who is familiar with the mitigation banking process. There a lot of moving parts so having as much information and knowledge regarding wetlands is critical. Complicated but not impossible!


CHEVAUX Group is excited to be working on this type of transaction. We love selling land and enjoy getting involved in the not so everyday transaction! If you want to know more about us, feel free to give us a call today!

Posted by

Beam & Branch Realty       

"Have you fully lived today?"

   Paula L. McDonald ~ REALTOR®, 

        Granbury, Texas 

 936-203-0279 Direct

Selling Hood County and surrounding areas!




 John Maxwell

Farm & Ranch


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Copyright 2020 Paula McDonald


Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Jeanne Dufort 03/10/2016 09:46 PM
Real Estate Industry
Texas Real Estate
The Woodlands Real Estate
land development
water conservation
real estate development
water mitigation

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Paula McDonald ~ GRI
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Cute Nicole Doty - Gilbert Real Estate Expert that is so true!  It is very interesting and I am enjoying learning more about it.

Mar 10, 2016 01:23 AM #4
Dinah Stallworth-Lewis
Priority Real Estate LLC - 318.332.8281 - Natchitoches, LA


This is great information.  I like learning new things.  Mitigation banks ...  knowledge is power.  Thanks for sharing.

Mar 10, 2016 04:11 AM #5
Paula McDonald ~ GRI
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

You bet Dinah Stallworth ! This type of knowledge separates the the good from the excellent!

Mar 10, 2016 06:40 AM #6
David Alan Baker Laveen & South Phoenix Realtor
Keller Williams Realty Phoenix - Laveen, AZ
Your local Expert

when dealing with this type of thing, I would highly recommend work with someone that does it, and knows it.

Mar 10, 2016 07:02 AM #7
Paula McDonald ~ GRI
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

You bet David, this is a slippery slope for most folks. It is becoming very common in our area so agents need to be informed.

Mar 10, 2016 07:23 AM #8
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

I suspect this kind of legislation will begin occuring more and more across the country in the future.  I'm hearing hints of it happening here in our California Central Valley.    Southern California water interests have a straw stuck in the rivers and streams of Northern and Central California.  Here's an article regarding our issues, published just a couple days ago: http://www.sfgate.com/science/article/Southern-California-water-giant-agrees-to-buy-6878573.php

Mar 10, 2016 07:31 AM #9
Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Paula McDonald 
Thanks. Learning about the Conservation issues in other parts of the US is so interesting. Sincerely, Lynn


Mar 10, 2016 03:59 PM #10
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Good morning Paula.  I knew by your heading I was lost.  Frankly, I haven't heard of any issue around here.  However, now that I know I can be better prepared.  Thanks

Mar 10, 2016 06:17 PM #11
Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH

Thanks for sharing!!!

Mitigation banks are a complicated issue therefore, when dealing with this type of transaction it will be important to have legal representation with an attorney who is familiar with the mitigation banking process

Mar 10, 2016 08:12 PM #12
Jeanne Dufort
Coldwell Banker Lake Country - Madison, GA
Madison and Lake Oconee GA

Excellent post!  I've attended some classes on this and other strategies for making land conservation pay!  Sharing.

Mar 10, 2016 09:33 PM #13
Rose Mary Justice
Synergy Realty Pros - Dandridge, TN
Synergy Realty Pros

Sounds lie a lengthy process but may be well worth it for your clients interest.

I had not heard of this in our area but always glad to have more knowledge on any subject to real estate transactions.

Mar 10, 2016 09:50 PM #14
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

A good example found here of either the  right person needed for the job or high dilligence standards and or both...The real in Real Estate demands respect

Mar 10, 2016 10:48 PM #15
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

This is great information that you are sharing with us.

Here in Florida, water mitigation is a major issue when dealing with undeveloped land. Commercial Agents need to take heed to these governmental guidelines.

As always, we do need to know enough to engage professionals to guide us through the legal maze.


Mar 10, 2016 11:16 PM #16
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

We have a similar thing with Land being placed into the "Agricultural Core"  Deed restrictions preventing development.  I like the free market aspect of it.  But the entire thing smells of government over reach.

Mar 11, 2016 01:44 AM #17
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Paula McDonald - it's always a great idea to consult an attorny - this indeed is a complicated issue....

Mar 11, 2016 10:44 AM #18
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

The government has abused their authority to regulate almost everything.  This is another intrusion and hopefully, we'll change many of the EPA rules and regulations with the next administration by January 20, 2017.  

Mar 11, 2016 05:49 PM #19
DEANNA EARLY - - ( NMLS # 268590 )
American National Bank & Trust - Smith Mountain Lake, VA
Highest Ranked Mortgage Loan Originator Virginia

Selling a large piece of land like this or buying it requires a knowledgeable agent like Paula McDonald .   Contact her today for additional information and assistance with the water issues.  

Mar 13, 2016 05:12 PM #20
Paula McDonald ~ GRI
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Thanks for the shoutout Deanna Early!  This is a complicated transaction issue for sure.

Mar 14, 2016 04:29 AM #21
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Paula - very interesting!  I've never heard of this before, but then again, we have very few wetlands in the Phoenix area.  Good for you for learning and helping your clients.  

Mar 17, 2016 07:26 AM #22
Winston Heverly
Winston Realty, Inc. - Atlantis, FL

I really enjoyed your post with this helpful information. Also glad I came across it in the archives.

Apr 09, 2016 01:20 PM #23
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Paula McDonald ~ GRI

Granbury, TX 936-203-0279
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