Commercial Real Estate in Bodega Bay: Coastal Zoning, Harbor-Town Uses and Utility Capacity

By Matthew Martinez, Founder, CEO & Managing Broker, Diamond Real Estate Group. California DRE #01869679.

Bodega Bay is an unincorporated harbor town on Highway 1, and its commercial core lies inside the Coastal Zone, where the County’s coastal code even sets a Bodega Bay-specific height rule. Restaurants, inns, fish and visitor retail, marine services and offices here are governed by Sonoma County’s coastal zoning code, the Local Coastal Plan and the capacity of the local utility district rather than by any city. Confirm the zoning, coastal permit path and utility service for a specific parcel with Permit Sonoma and the Bodega Bay Public Utility District before relying on this page.

Who controls the parcel

There is no city government. Land use is decided by Sonoma County through Permit Sonoma, applying Chapter 26C, the county’s coastal zoning code, together with the Local Coastal Plan (LCP). The Board of Supervisors adopted the updated LCP on July 17, 2023; the Coastal Commission conditionally certified it on November 14, 2024; and the Board accepted the certified version on February 4, 2025, after which the County describes the plan as in effect. Permit Sonoma says the plan will be carried out by amending the Coastal Zoning Ordinance and the Coastal Administrative Manual, so the zoning text you read today may change during that work.

Water and sewer come from the Bodega Bay Public Utility District (BBPUD), a separately elected district. Tidelands and submerged lands stay under the Coastal Commission’s direct jurisdiction, which matters for anything built over water.

Bodega Bay zoning for commercial, industrial and mixed use

Which district a given lot carries comes from the County’s zoning map, not from this table. Look the parcel up on Permit Sonoma’s parcel search before you price a use.

What the coastal districts allow in a harbor town

Lodging. In CT, an inn or motel of up to 15 rooms is permitted outside village commercial areas, while 16 or more rooms requires a use permit. The code caps hotels at 200 rooms inside an urban service area, 100 in a served rural area and 50 elsewhere. A single bed-and-breakfast of five rooms or fewer is allowed if an owner or operator lives on site.

Food and retail. CT keeps restaurants under 2,000 square feet and visitor retail under 3,000 square feet without a use permit. C2 is broader: retail stores, pharmacies, hardware and restaurants with alcohol are permitted, but takeout food and live or amplified entertainment need a use permit.

Marine and recreation uses. Marinas, campgrounds, RV parks and commercial recreation are use-permit uses in CT, so a harbor-related business is a discretionary decision rather than a by-right one.

Living space with a business. C2 and CS allow apartments that are secondary to a commercial use with a use permit. Residential floor area must stay below half the commercial floor area, units must attach to the commercial building, and each is capped at 1,000 square feet.

Height, views and Coastal Commission appeals

Bodega Bay Core. The C2, CS and R2 chapters each carry a special 16-foot residential height limit in the Bodega Bay Core Area, with up to 15% of units in a major development allowed to exceed it. Commercial buildings west of Highway 1 are held to 24 feet; east of the highway, 24 feet applies where a building is visible from a designated scenic road and 35 feet where it is not.

Sereno del Mar. North of town, Permit Sonoma’s coastal communities page describes Sereno del Mar as a 1970 to 1972 subdivision of 173 lots, and the zoning text gives it its own 16-foot residential standard.

Appeals. According to the County’s LCP FAQ, the Coastal Commission keeps appeal jurisdiction within 300 feet of a beach, the mean high tide line or a bluff edge, within 100 feet of a wetland, estuary or stream, and between the first public road and the sea. Commercial uses that need a coastal permit outside a commercial land use designation are also appealable. Expect most waterfront approvals in Bodega Bay to be appealable.

Slopes and design. All three commercial districts bar development on slopes over 30% unless no feasible alternative exists, require design review and call for new utility lines to go underground.

Water, sewer and lot size

BBPUD was formed in 1948 to supply drinking water and took over the wastewater plant in 1975. The district’s own summary lists 1,058 water connections and 1,006 sewer connections, a groundwater supply, more than 21 miles of water mains and eight lift stations. Treated effluent irrigates the Bodega Harbour golf course and a district disposal site.

Lot size depends on that service. In CT and CS, the minimum is 10,000 square feet with public sewer, one acre with public water only and 1.5 acres with neither. Ask BBPUD early about capacity and connection charges for any new restaurant, room count or change of use, since we did not find a published capacity policy.

Vacation rentals and visitor lodging

Sonoma County licenses vacation rentals countywide, and the County’s District 5 fact sheet says the 2022 changes extend the license and performance standards to the Coastal Zone. Guest count is capped at 12, ownership is limited to individuals and family trusts with one license each, and managers must respond to complaints within an hour. Bodega Bay was not on the 2023 list of cap or exclusion zones, but that list can change; check the parcel for an X combining district. Hotels and inns remain commercial uses decided under the zoning table above.

Transfer tax, business tax and property tax

The Sonoma County Recorder charges $0.55 per $500 of value, less any loans assumed. Only Santa Rosa and Petaluma add a city tax, so a Bodega Bay sale pays the County rate alone. Lodging collects the County’s transient occupancy tax; we did not verify the current rate. A change of ownership generally triggers Proposition 13 reassessment.

Due diligence that matters in Bodega Bay

Start with our commercial due diligence checklist, then add:

• Confirm the parcel’s Chapter 26C district and whether it lies in the Bodega Bay Core Area.
• Map the Coastal Commission appeal area against the parcel’s distance to the beach, bluff, wetlands and the first public road.
• Get BBPUD’s written answer on water and sewer for the intended use.
• Check room counts, seats and square footage against the CT and C2 thresholds before assuming a use is by right.
• Review sea-level rise and tsunami mapping in the LCP map series.
• Ask whether pending amendments to the Coastal Zoning Ordinance will change the parcel’s standards.

Questions people ask

Sources & notes

1. Permit Sonoma, Local Coastal Plan Update
2. Permit Sonoma, LCP Frequently Asked Questions
3. Permit Sonoma, Coastal Communities
4. Sonoma County Code Chapter 26C, CT district
5. Chapter 26C, C2 district
6. Chapter 26C, CS district
7. Chapter 26C, R2 district
8. Bodega Bay Public Utility District, About
9. Sonoma County, District 5 Vacation Rental Fact Sheet (October 2023)
10. Sonoma County Recorder, Documentary Transfer Tax

Note: We read the coastal zoning text through GoCodebook’s October 2026 edition, and the County is amending that code to implement the certified LCP. We did not map which district applies to individual Bodega Bay parcels, read the full certified LCP, confirm BBPUD connection fees or capacity, or verify the transient occupancy tax rate.

This page is general information, not legal or tax advice. Last reviewed October 2026 by Matthew Martinez.

Related: Bodega Bay real estate guide · Multifamily property in Bodega Bay · Commercial real estate services