Transferable development rights (TDRs) offer landowners the opportunity to realize the economic value of their land without having to develop it. TDRs are transferable development rights or credits created when a local government preserves land through a land conservation program. These credits can then be sold to a developer to use for projects in other areas. TDRs can take many forms, from transferable development credits that a developer can purchase from a local government to transferable development rights that can be created when a local government purchases or protects land. Local governments typically use TDRs as part of a comprehensive land use plan in order to promote smart growth, balance development and conservation, and protect important agricultural and open space lands.

Transferable development rights can be an effective tool for protecting important land while also allowing the economic development of other areas. By transferring development away from sensitive lands, local governments can ensure that the land is preserved and protected while also allowing developers to build in other areas. TDRs provide a unique way for land owners to realize the economic value of their land without having to develop it.