State Court of Appeals Upholds Michigan Wetlands Regulations

A recent Michigan Court of Appeals decision, the Blue Water Isles Company v. Department of Natural Resources and Natural Resources Commission, is the first appellate level decision in the state to uphold the constitutionality of wetlands regulations in Michigan. The decision is significant as Michigan is the only state which has "assumed" the Clean Water Act §404 program from the federal government under EPA regulations implementing the statute. The Court of Appeals also found that while the regulation of the parcel substantially reduced the development and profit potential, it did not constitute a "taking" of property without just compensation.