Definition of Purchase of Development Right and Transfer of Development Right

Purchase of Development Rights (PDR) is a land conservation tool that allows a government agency or a nonprofit organization to buy the right to develop a property from a landowner. In exchange for the purchase, the landowner agrees to restrict the use of the land to certain activities, such as farming or conservation, and permanently protect it from development.

Transfer of Development Rights (TDR) is a land use planning tool that allows developers to purchase the right to develop a property from a landowner who agrees to sell the development rights. The developer can then transfer these rights to another property, usually in a designated receiving area, where additional development is allowed. This allows for the preservation of the sending area while still allowing for economic development in the receiving area.