Commercial Real Estate in Lower Lake: Historic Main Street, Highway 53 and County Zoning

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

Lower Lake is one of Lake County’s oldest towns. It is unincorporated and sits just south of the City of Clearlake, where Highways 29 and 53 meet. Its commercial land includes the historic Main Street core, newer development on Highway 53 north of the Main Street junction, and visitor-serving sites near Anderson Marsh State Historic Park. Lake County controls zoning here. Confirm each parcel’s district, its sewer status and whether it sits in the city or the county.

Who controls the parcel

• Land use: Lake County, under the zoning ordinance and the Lower Lake Area Plan, which the Board of Supervisors adopted March 1, 1988 (Resolution 88-66). The City of Clearlake borders the town. Parcels on the line may fall under the city’s 2025 zoning code instead. See our Clearlake commercial guide.
• Sewer: The Lake County Sanitation District serves parts of Lower Lake through its Southeast Regional system, inside the boundary of Assessment District No. 1-3. Lake LAFCo’s 2010 review counted 386 Lower Lake connections in 2007. It also noted that in 2010 the district restricted new connections to the Southeast system after sewer spills (Ordinances 2918 and 2923). The area plan says eastern and northeastern Lower Lake lie largely outside the sewer area and should develop at lower densities until service arrives.
• Water: Lower Lake County Waterworks District No. 1 and private wells. The plan notes that the district was limited in new connections until it added capacity, and that several of its wells have iron and manganese problems.
• Fire: Lake LAFCo’s 2025 fire review places Lower Lake in the Lake County Fire Protection District, with Station 65 in Lower Lake. It lists a Lower Lake fire special tax of $147.90 plus CPI.

Lower Lake zoning for commercial and industrial use

When the plan was written, light commercial covered about 33 acres, heavy commercial about 6 acres and industrial only about 2 acres. Off sewer, commercial lots need 15,000 to 40,000 square feet, depending on the water source.

Main Street, Highway 53 and the Clayton Creek industrial site

• Historic Main Street. The plan calls Main Street the historic center of commerce. It flags deteriorating historic buildings and calls for their rehabilitation. The 1876 Stone Jail was listed on the State Register in 1983. The schoolhouse (1877), Brick Hall (1864), Justice Court building and Odd Fellows/Rebekah Hall were named for evaluation. The plan recommends a downtown historic preservation district, a historic theme for new development, and a museum downtown. Streetscape policies call for street trees, sign-size limits and undergrounded utilities.
• Highway 53 north of the junction. Most recent commercial building has gone here. The plan discourages strip commercial outside the community area and requires landscaped setbacks along Highways 29 and 53.
• East of Highway 29 at Clayton Creek Road. The plan calls this area a prime site for light industrial and heavy commercial use. It cites the need for industrial land in the east lake area and calls for widening Clayton Creek Road to industrial standards.
• Anderson Marsh. The 871-acre state historic park sits next to town and is described as California’s largest registered archaeological district. Commercial uses near it should serve park visitors without harming the park. The plan also asks that runoff be routed east of Highway 53 to protect the marsh.

Mining, wine and other Lower Lake land uses

• McLaughlin Mine lands. Morgan Valley Road from Lower Lake leads to the former Homestake McLaughlin gold mine complex. The 8,500-acre complex spans Lake, Napa and Yolo counties, with about 2,500 acres of processing facilities in Lake County. The plan limits uses next to it to very low density ranching, open space and resource activities.
• Vineyards. The plan noted that wine grape plantings had nearly doubled and encouraged viticulture. Winery and tasting room rules come from the county’s agricultural districts. Confirm them before you buy.
• Home and cottage businesses. Article 27 allows home occupations, produce stands up to 400 square feet, and cottage industries by minor use permit.

Transfer tax, business tax and property tax

Lower Lake is unincorporated, so the county documentary transfer tax of $1.10 per $1,000 applies, under the Assessor-Recorder fee schedule. The City of Clearlake’s own transfer tax does not apply here. Lodging pays the county’s 9% TOT. A sale generally triggers Proposition 13 reassessment, and the Lower Lake fire special tax appears on the bill. We did not verify a county business license tax.

Due diligence that matters in Lower Lake

Start with our commercial due diligence checklist, then add:

• Confirm the parcel is in the county, not the City of Clearlake.
• Check whether it lies inside sanitation Assessment District 1-3 and whether any Southeast system connection limits still apply.
• Get a will-serve letter from Lower Lake County Waterworks District No. 1, and ask about iron and manganese treatment.
• For Main Street buildings, check historic status and any HP overlay.
• For Highway 29 and 53 frontage, plan for landscaped setbacks.
• Near Anderson Marsh, review drainage and archaeological sensitivity.

Questions people ask

Sources & notes

1. Lower Lake Area Plan (adopted March 1, 1988)
2. Lake County Zoning Ordinance: Art. 16 CH, Art. 18 C1, Art. 19 C2, Art. 21 M1, Art. 27, Art. 38 HP
3. Lake LAFCo Sanitation MSR (2010)
4. Lake LAFCo Fire Protection Districts MSR (2025)
5. Lake County Assessor-Recorder Schedule of Fees and TOT Ordinance

Note: The area plan dates from 1988, and its acreage, service and fire district descriptions may be out of date. The 2010 sewer connection restrictions may since have been lifted. Confirm current status with the sanitation district. Whether an HP overlay was ever mapped on Main Street was not verified.

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

Related: Lower Lake real estate guide · Multifamily property in Lower Lake · Commercial real estate services