Finds that the population in western Washington is growing and will continue to grow. Models indicate that the central Cascades region can expect a doubling of the population within the next one hundred years.

Recognizes that the growth management act has used large lot zoning to discourage residential development of rural and resource lands, and that the increase in nonurban development has disproportionate undesirable impacts to landscape and watershed integrity, environmental functions, economic viability of resource lands, and public costs.

Declares that the most important component in building a successful transfer of development rights program is creating adequate receiving area capacity, and that it is a regional goal to direct growth to urban areas, and therefore it is a priority to develop this receiving capacity primarily in urban areas. In addition, the potential for additional receiving areas in appropriate nonurban areas is being explored concurrently.

Declares that a county planning under RCW 36.70A.040 may designate no more than one rural village in the rural area outside of limited areas of more intensive rural development established pursuant to RCW 36.70A.070(5)(d).