Commercial Real Estate in Dillon Beach: Coastal Zoning, Resort and Campground Uses, and Utility Limits

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

Dillon Beach is a small unincorporated coastal community at the mouth of Tomales Bay in northwest Marin. It has very little conventional commercial property. Business activity centers on visitor-serving uses: the beach resort and store, the Lawson’s Landing campground and boat launch, vacation rentals, and agriculture on the surrounding ranches. Buyers are usually looking at a resort, campground, ranch or rental portfolio rather than a storefront. Confirm each parcel’s coastal zoning, permit history and utility service with Marin County.

Who controls the parcel

Dillon Beach has no city government. Marin County regulates land use through its Coastal Zoning Code (Title 20) and Local Coastal Program. The Dillon Beach Community Plan (1989) covers the community and the surrounding farmland. The county filed its Notice of Determination for the plan on December 27, 1988, after preparing an EIR. Under policy C-INT-3 of the county’s certified Land Use Plan, the Coastal Commission has certified the Dillon Beach plan and made it part of the LCP, so it is a legal standard for coastal permits. Utilities come from different providers in each part of the community:

Area	Water	Sewer
Dillon Beach Village	Coast Springs Water Company (Cal Water), a CPUC-regulated utility	Individual septic systems
Oceana Marin	Cal Water serves part	North Marin Water District’s Oceana Marin sewer
Ranches and resort lands	Wells, springs or private systems	Septic or private systems

See our Marin County commercial guide for the countywide picture.

Dillon Beach zoning for commercial, resort and agricultural use

All of Dillon Beach is in the Coastal Zone, and most development needs a Coastal Development Permit. The coastal districts that matter for business use are set out in Chapter 20.62:

District	Intended uses	Notes (Table 5-3 and 5-2)
C-RCR Resort and Commercial Recreation	Resorts with public access to recreation	Hotels and motels principally permitted. Restaurants and bars by use permit. Retail and offices not listed
C-VCR Village Commercial/Residential	Village centers mixing resident and visitor services	Retail, offices and restaurants up to 40 patrons permitted. Hotels by use permit
C-H1 Limited Roadside Business	Rural businesses serving motorists	Small restaurants permitted. Most other uses by use permit
C-R1 (village, with combining designators)	Single-family homes	Most of the village is C-R1-BD. Home occupations and B&Bs of three rooms or fewer permitted
C-APZ Agricultural Production	Agriculture	1 unit per 60 acres. Farm uses and agricultural homestays
C-OA Open Area	Open space, recreation and beach access	—

Check the county zoning map for the actual district on each parcel. The village itself is overwhelmingly residential, so a "commercial" deal in Dillon Beach usually means resort, campground, agricultural or lodging land.

Lawson’s Landing, the resort area and visitor uses

The large visitor-serving operations sit on resort and agricultural land near the beach and the mouth of Tomales Bay. The county’s 1997 notice for a Lawson Dillon Beach Resort master plan and coastal permit described a mixed-use proposal on about 53.7 acres. It proposed 74 residential units and 56,700 square feet of retail-commercial space, with the Coastal Commission listed as a reviewing agency. Treat that as history. Current entitlements for any resort or campground parcel must come from the county’s permit file and any later Coastal Commission action.

Under the coastal code, the CDP decision for a "permitted" or conditional use can generally be appealed to the Coastal Commission, and use permits run alongside it. Campgrounds and RV use also face Environmental Health review for water and wastewater.

Short-term rentals, lodging and utilities

A separate STR cap. Dillon Beach is treated differently from the rest of Marin. Under Chapter 5.41 (Ordinance 3816, May 2024), its licenses do not count toward the 1,200-license countywide cap. Dillon Beach has its own cap of 125 licenses at first and 204 ultimately, the only township where the ultimate figure is higher. Each owner may hold one license. Hotels, B&Bs, campgrounds and ag homestays are exempt from the STR license.
Village wastewater. The county’s Dillon Beach background page describes 160 village lots, 149 of them developed. Lots are typically about 1,725 square feet, most homes date from the 1930s and 1940s, and streets are narrow. It also notes that septic systems may threaten the village water supply. A new business use on a village lot is constrained by space, parking and wastewater.
Oceana Marin sewer. North Marin Water District’s system has 235 connections over about one square mile, roughly 5 miles of pipe. The district’s Board Policy 34 governs wastewater service in West Marin.

Transfer tax, business tax and property tax

The Marin County Recorder’s sheet shows the county documentary transfer tax of $0.55 per $500, excluding assumed liens. Dillon Beach is unincorporated, so no city tax applies. Businesses need a county business license, and lodging, campground and STR operators must also collect transient occupancy tax under a county certificate. A sale generally triggers Proposition 13 reassessment. Agricultural land may be under a Williamson Act contract, which changes the tax picture.

Due diligence that matters in Dillon Beach

Start with our commercial due diligence checklist, then add:

Pull every coastal development permit, use permit and Coastal Commission action for the parcel, especially for campgrounds and resort uses.
Identify the water provider (Cal Water, NMWD or a private source) and confirm capacity for the planned use.
Get Environmental Health records for septic, campground sanitation and any community system.
Confirm STR license status for each rental, and whether lodging is a licensed STR or an exempt hotel or campground.
Check dune, bluff, tsunami and sea-level exposure near the beach and bay mouth.
For ranch land, confirm agricultural zoning and any Williamson Act contract.

Questions people ask

Is there commercial zoning in Dillon Beach?

Very little. The village is mostly C-R1-BD residential. Visitor-serving business is mainly on resort, campground and agricultural land under coastal permits.

Who approves a campground or resort expansion?

Marin County, through coastal and use permits, with possible appeal to the Coastal Commission.

Why is Dillon Beach separate in the short-term rental rules?

The county excludes Dillon Beach from its 1,200 countywide cap and gives it its own cap: 125 initially and 204 over time.

Who provides water and sewer?

Coast Springs Water Company, owned by Cal Water, serves the village and part of Oceana Marin. North Marin Water District runs the Oceana Marin sewer, and the village relies on septic.

Is there a city transfer tax?

No. Only the county’s $0.55 per $500 applies.

Does Diamond handle commercial property in Dillon Beach?

Contact Matthew Martinez to discuss buying, selling or leasing commercial property in Dillon Beach.

Sources & notes

Note: We did not read the Dillon Beach Community Plan text, which CEQAnet does not host. We also did not verify the current permit status of Lawson’s Landing or the zoning of individual resort parcels.

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

Inquire about a listing or to schedule a meeting

Matthew Martinez

Your inquiry is processed through our iHomefinder service. Review the form’s contact choices before submitting. Privacy Policy · Terms of Use.