Commercial Real Estate in Nicasio: Agricultural Zoning, Farm Businesses and Rural Permits

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

Nicasio is a small unincorporated valley community in west-central Marin, surrounded by ranches and the Nicasio Reservoir. Commercial property here is mostly agricultural: dairies and cattle ranches, farm-product processing and sales, a few rural business sites, and the small village center. Business use depends on Marin County’s agricultural zoning, local design guidelines, and wells, septic and fire access. Confirm the zoning of any parcel with the Marin County Community Development Agency before relying on this page.

Who controls the parcel

Nicasio is not incorporated, so Marin County decides land use under Title 22. The county’s community plans page lists a Nicasio Community Plan from 1979. Nicasio is inland, so the coastal code that governs nearby Point Reyes Station and Olema does not apply. The Nicasio Design Review Board is appointed by the Nicasio Land Owners Association. It comments to the county on local projects under the Nicasio Valley Development and Design Guidelines, which the Board of Supervisors adopted in 1997. County staff must find that a project conforms to those guidelines before approving it. Fire protection comes from the Nicasio Volunteer Fire Department, whose response area of about 22,500 acres is one of the largest in Marin. See our Marin County commercial guide for county-wide rules.

Nicasio zoning for commercial, agricultural and rural business use

County project records show the kinds of districts mapped in the valley. A design review file at 70 Indian Hill Road is zoned ARP-20 with an AG2 Countywide Plan designation. A file at 5760 Lucas Valley Road is zoned APZ-10 with an AG1 designation and sits under the Las Cumbres Master Plan. The business uses below come from Chapter 22.08 and Chapter 22.12.

District	Intended uses	Business uses and limits
ARP Agricultural Residential Planned (e.g. ARP-20)	Agriculture with clustered homes	Farm stands and on-site processing permitted within limits. B&B of 3 rooms or fewer permitted, 4 or 5 by use permit. Other limited commercial uses by use permit as part of an agricultural plan
APZ Agricultural Production Zone (e.g. APZ-10)	Protecting commercial agriculture	Planned district, so design review applies. We did not review APZ’s use table, so confirm uses with the county
A2 to A60 Agriculture	Commercial agriculture	Processing and farm sales within limits. B&B of 3 rooms or fewer permitted in A3 to A60. 0.05 FAR
VCR, CP, H1 (only where mapped)	Village, planned and roadside commercial	Small restaurants permitted in VCR and CP. Offices permitted in VCR and CP. Most uses in H1 need a use permit

In the agricultural districts, non-agricultural development must be clustered on no more than about 5% of a parcel’s gross acreage where feasible. That limits where a new barn, shop or tasting space can go.

What a farm or rural business can do in Nicasio

Processing and farm sales. On-site processing is permitted when the products come from the site or other Marin farmland the operator owns or leases, and the processing floor area stays under 5,000 square feet. Otherwise a use permit is needed. Farm stands are permitted up to 500 square feet of sales area. A larger stand, or one selling products bought from other farms, needs a use permit.

Tasting rooms. Tasting rooms are not listed in the agricultural use table, and the code bars unlisted uses. A winery or cidery tasting room would need confirmation from the county before purchase.

Home businesses. Home occupations are permitted in the agricultural districts. Cottage industries, which allow more employees or activity, need a use permit.

Horses. Under the Nicasio guidelines, a parcel housing more than five horses must file a horse management plan. This matters for boarding stables and equestrian businesses.

Lodging, short-term rentals and permits

B&Bs and homestays. A B&B of up to three rooms is permitted in ARP and A3 to A60. The county’s short-term rental ordinance, Ordinance 3816 of May 2024, exempts B&Bs, agricultural homestays and campgrounds. It also exempts units on agriculturally zoned parcels of ten acres or more where commercial agriculture is the main use.

Short-term rentals. Otherwise, the Nicasio township is capped at 11 STR licenses initially and 8 over time, under a countywide cap of 1,200. ADUs created after 2020 or 2021 and agricultural worker units are ineligible.

Design review. Planned districts such as ARP and APZ require design review even for modest buildings. The Indian Hill file, for example, was a 480-square-foot garage reviewed under Section 22.42.020.A. Expect review by both the county and the local design review board.

Transfer tax, business tax and property tax

Only the county transfer tax applies: $0.55 per $500, figured without assumed liens, per the Recorder’s sheet. Businesses in unincorporated Marin need a county business license, renewed each year by July 31. A sale generally triggers Proposition 13 reassessment. Land under a Williamson Act contract may be taxed on agricultural value, so ask the seller and the Assessor about any contract.

Due diligence that matters in Nicasio

Start with our commercial due diligence checklist, then add:

Confirm the zoning district and any master plan, such as Las Cumbres, that sets building envelopes.
Confirm water. Many sites rely on wells, springs or small systems. The Nicasio School water project, filed in October 2024, added filtration to meet surface water treatment rules. Small systems like it face state oversight.
Size septic for any processing, lodging or employee use.
Check fire access and defensible space. Some roads, such as Laurel Canyon Road near Lake Nicasio, are not county-maintained.
Get a pre-application read from the Nicasio Design Review Board.
Check for a Williamson Act contract or conservation easement before planning new uses.

Questions people ask

Who regulates land use in Nicasio?

Marin County, under Title 22, with input from the Nicasio Design Review Board and the 1997 Nicasio Valley design guidelines.

Can I open a farm stand?

Yes, up to 500 square feet of sales area for products grown on site or on Marin land you farm. Larger or resale stands need a use permit.

Can I run a tasting room on a Nicasio ranch?

Tasting rooms are not listed in the agricultural use table. Ask the county before you buy.

Can I run a B&B?

Up to three rooms is permitted in ARP and A3 to A60. Four or five rooms needs a use permit.

How many short-term rentals are allowed?

The Nicasio township cap is 11 licenses initially, falling to 8 over time. Agricultural homestays and B&Bs are exempt.

Is Nicasio in the Coastal Zone?

No. It is inland, so county Title 22 applies rather than the coastal zoning code.

Does Diamond handle commercial property in Nicasio?

Contact Matthew Martinez to discuss buying, selling or leasing commercial or agricultural property in Nicasio.

Sources & notes

Marin County Code Chapter 22.08, Agricultural Districts and Chapter 22.12, Commercial Districts (GoCodebook, October 2026)
Marin County, Community and Area Plans
Marin County project pages: 70 Indian Hill Road and 5760 Lucas Valley Road
Nicasio Design Review Board
National Park Service, FIRESafe Marin projects in Nicasio
CEQAnet, Nicasio School Water System Project
Marin County Code Chapter 5.41, Short Term Rentals
Marin County Recorder, transfer tax and county business license

Note: We did not read the 1979 Nicasio Community Plan, the 1997 design guidelines, the APZ use table or the county zoning map for the village center. Confirm whether any parcel in the village carries commercial zoning.

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

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