TDR is a realty transfer mechanism permitting owners of preservation area land to separate the development rights of their property from the property itself and sell them for use elsewhere. Developers who purchase these “development credits” may then develop areas deemed appropriate for growth at densities higher than otherwise permitted. Once the development rights of a property are sold the land will permanently restricted from further development. 

TDR is an equity protection mechanism that, unlike traditional zoning, enables preservation area landowners to be compensated for reductions in development potential.  When well-designed, TDR can provide benefits to landowners, developers and municipalities