The Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers have released a proposed update to the “Waters of the United States” (WOTUS) rule, bringing long-awaited clarity to how water features are regulated under the Clean Water Act. This update follows the U.S. Supreme Court’s 2023 Sackett v. EPA decision, which significantly narrowed federal authority over wetlands and waterways.
For REALTORS®, property owners, and developers, this proposal represents a meaningful shift toward greater predictability and fewer regulatory surprises.
What’s Changing
The proposed rule formally defines key terms — including “relatively permanent” waters and wetlands with a “continuous surface connection” — to align with the Supreme Court’s narrower standard. Only tributaries with a clear bed and bank that flow consistently into navigable waters would qualify as federally regulated, and interstate waters would no longer be automatically categorized as WOTUS.
Why It Matters for Real Estate
For years, fluctuating WOTUS interpretations created uncertainty during transactions, due diligence, and site development. This proposal helps address that by offering a clearer, more stable framework. Fewer water features will fall under federal jurisdiction, which may reduce permitting delays, lower compliance costs, and provide more confidence for buyers, sellers, and investors — especially in redevelopment areas where wetlands had been ambiguous.
What Comes Next
The rule is currently open for a 45-day public comment period before final adoption. NAR will continue reviewing the proposed language and advocating for practical, workable regulations that protect both natural resources and property rights.
Bottom Line
This proposed WOTUS update is a positive step for REALTORS® and commercial property stakeholders. It delivers clearer standards, reduces regulatory uncertainty, and better aligns federal oversight with the Supreme Court’s direction — ultimately supporting smoother transactions and more predictable development timelines.
More here: EPA Proposes WOTUS Rule Revisions