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Florida Real Estate Wire - Real Estate News > Real Estate > Supreme Court Ruling Reshapes Wetland Regulations: What Developers Need to Know

Real Estate

Supreme Court Ruling Reshapes Wetland Regulations: What Developers Need to Know

September 3, 2025
Gavel striking marshland near courthouse dome.
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The Supreme Court’s decision in Sackett v. EPA on May 25, 2023, has significantly altered the Environmental Protection Agency’s (EPA) authority over wetlands under the Clean Water Act (CWA). This landmark ruling, stemming from a dispute over a residential development in Idaho, redefines the scope of "waters of the United States," potentially opening up millions of acres of wetlands, particularly in states like Florida, to increased development.

Key Takeaways

  • The Supreme Court narrowed the definition of "waters of the United States" under the Clean Water Act.
  • The EPA’s regulatory reach over wetlands is now more constrained.
  • Property owners and developers may experience greater autonomy in land use decisions.
  • Florida, with its extensive wetlands, could see significant impacts on development projects.

The Sackett v. EPA Case

The case involved Michael and Chantell Sackett, who purchased a property in Idaho with plans to build a home. Their activities, which involved backfilling wetland areas on their lot, led to EPA intervention. The agency cited potential violations of the CWA, threatening substantial daily penalties, asserting that the work impacted adjacent wetlands connected to Priest Lake, a navigable body of water.

The core of the legal battle centered on whether the wetlands on the Sackett property constituted "waters of the United States." The EPA argued that the development’s impact on the wetlands, which were linked to a non-navigable creek feeding into Priest Lake, fell under federal jurisdiction. This connection, along with the property’s proximity to the Kalispell Bay Fen, formed the basis of the EPA’s claim.

The Supreme Court’s Ruling

The Supreme Court ultimately sided with the Sacketts, establishing a stricter standard for federal regulatory authority over wetlands. The Court ruled that for the EPA to assert jurisdiction under the CWA, two conditions must be met:

  1. The water body in question must be a "water of the United States," meaning it is relatively permanent and connected to traditional interstate navigable waters.
  2. The wetland must have a continuous surface connection to that water body, making it difficult to distinguish where the water ends and the wetland begins.

The Court found that the wetlands on the Sackett property did not meet this stringent connection requirement, departing from the EPA’s previous interpretation of the CWA.

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Implications for Florida and Beyond

This decision carries significant weight for states with substantial wetland ecosystems, such as Florida, which boasts over 11 million acres of wetlands. Properties previously subject to federal regulatory oversight due to their wetland status may now be cleared for development. This shift could lead to reduced development costs for landowners and developers.

However, the environmental implications are also considerable. Florida’s wetlands play a crucial role in providing wildlife habitats and mitigating flood risks. The reduced stringency of federal protections could impact these vital ecological functions. The long-term effects of the Sackett decision on wetland conservation and development patterns in Florida and across the nation remain to be seen.

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