Commercial Real Estate in Discovery Bay: Planned Unit Zoning, Marine Business and Delta Utilities

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

Discovery Bay is a waterfront community in far eastern Contra Costa County, built around man-made lagoons that connect to the Delta. Its commercial property is mostly a few shopping centers near Discovery Bay Boulevard and Highway 4, marina and boat service sites, small industrial and storage parcels around Newport Drive, and a growing set of public and institutional buildings. Almost everything was entitled through county planned unit approvals, so confirm the zoning and development plan for any parcel with Contra Costa County before you commit.

Who controls the parcel

Discovery Bay is not a city. Two agencies split the job:

Contra Costa County sets zoning and issues land use permits, development plan changes and building permits through its Department of Conservation and Development. Every recent Discovery Bay project we reviewed on the state CEQA database had the county as lead agency.
Town of Discovery Bay Community Services District (TODB). The district’s services page says plainly that its board has no land use or zoning authority. It advises the county on development and on police and fire matters. Contra Costa LAFCO’s 2023 directory lists the district as formed in 1998, covering 4.76 square miles and serving about 15,284 people. It provides water, sewer, levee maintenance, parks, lighting and landscaping.

The district’s growth and development page notes that most applications in the pipeline are small, such as infill homes, remodels and business applications, and directs questions to the county. The district also posts its correspondence with the county’s Municipal Advisory Council.

See our Contra Costa County commercial guide for countywide rules, and our Brentwood guide for the nearest city.

Discovery Bay zoning for commercial, industrial and mixed use

Much of Discovery Bay sits under P-1 Planned Unit zoning, with uses set by a final development plan. Two county project records show how far back those plans go. The 2025 TODB administrative building approval and a 2025 residential lot approval both modified Final Development Plan CDDP74-03014. A 2022 boat repair project modified a separate 1974 plan, CDDP74-03074.

District or designation	Intended uses	Notes
P-1 Planned Unit	Uses set by the final development plan	Most of Discovery Bay, including centers and storage sites
General Plan Commercial / Light Industrial	Designations under P-1 zoning	A 2003 mini storage site on Newport Drive was P-1 zoned with a Light Industrial plan designation
N-B Neighborhood Business	Day-to-day shopping and offices in enclosed buildings	County district; 50 ft height; development plan required
Public / Semi-Public	Public facilities	A former firehouse needed a general plan amendment to become a boat shop
A-3 Heavy Agricultural	Farming, with county permits for some uses	Found on edge parcels before rezoning

Where business happens in Discovery Bay

The state CEQA database gives a picture of the kinds of commercial projects the county has handled here:

Boat repair and marine retail. In 2022 the county reviewed a boat service and repair shop on a 0.64-acre site near Discovery Bay Boulevard and Riverlake Road. It would convert an old firehouse, add an 8-foot screening fence and sell parts and accessories. The site needed a general plan change from Public/Semi-Public to commercial plus a land use permit.
Self storage. A 2003 negative declaration covered six buildings with 159 storage units, about 28,050 square feet, on 1.72 acres at Newport Drive and Clipper Drive. The applicant asked to cut parking from 28 required spaces to 4.
Public and institutional. The TODB’s 8,315-square-foot administrative building at Discovery Bay Boulevard and Willow Lake Road was approved in 2025 with 28 parking spaces. In 2016 the county approved Mariner’s Discovery Church, a 13,250-square-foot church with preschool and day care at 1619 Bixler Road.

The pattern is clear: even a modest change of use usually means a development plan modification, and sometimes a general plan amendment.

Rules specific to Discovery Bay

Short-term rentals. Waterfront homes draw vacation renters, and the county’s Chapter 88-32 requires a permit, which runs one year for ministerial approvals. The requirements allow one rental per lot. They cap non-hosted rentals at 90 days a year and ban events. They also require a county business license and a transient occupancy registration certificate.
Cannabis. Discovery Bay is not one of the nine areas in the county’s -CE Cannabis Exclusion district; neighboring Knightsen is. The county’s separate cannabis rules and permits still apply.
Utilities. Any new business needs TODB water and sewer service. According to LAFCo’s 2022 Pantages report, the district runs six wells and two treatment plants with 2.35 million gallons per day of capacity against about 1.4 million of demand. Capacity fees are set through the district’s fee study.
Delta setting. Discovery Bay sits in the Delta, where levees, flood zones and state Delta agency review can apply. Confirm flood zone status and any Delta consistency requirement for larger projects.

Transfer tax, business tax and property tax

Discovery Bay has no city transfer tax. The Contra Costa Clerk-Recorder collects the county’s $0.55 per $500, and lists city taxes only for El Cerrito and Richmond. Under Proposition 13, a sale generally resets the assessed value. The county code requires a county business license under Chapter 64-14 at least for short-term rentals; confirm what applies to other businesses with the Treasurer-Tax Collector. Check the tax bill for TODB lighting and landscaping charges.

Due diligence that matters in Discovery Bay

Start with our commercial due diligence checklist, then add:

Get the zoning, the governing final development plan number and every later modification from the county.
Check the general plan designation; a mismatch may need an amendment, as the boat shop did.
Confirm water and sewer service and capacity fees with TODB.
Check flood zone, levee and Delta agency requirements.
For any lodging or rental use, confirm the county permit and the 90-day non-hosted cap.
Review parking against county standards, and any past parking reductions.

Questions people ask

Who approves commercial projects in Discovery Bay?

Contra Costa County. The Town of Discovery Bay CSD advises but has no zoning authority.

What zoning covers most of Discovery Bay?

P-1 Planned Unit zoning under final development plans, some dating to 1974.

Can a public building be converted to a business?

Possibly, but the 2022 boat shop case needed both a general plan amendment and a land use permit.

Who provides water and sewer?

The Town of Discovery Bay CSD, from six wells and two wastewater plants.

Can I run a vacation rental?

With a county short-term rental permit. Non-hosted rentals are capped at 90 days a year, and events are banned.

Is there a Discovery Bay transfer tax?

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

Does Diamond handle commercial property in Discovery Bay?

Contact Matthew Martinez to discuss buying, selling or leasing commercial property in Discovery Bay.

Sources & notes

Town of Discovery Bay CSD, Town Services, Future Growth & Development and Capacity Fee Study
Contra Costa LAFCO, Directory of Local Agencies, Section 3 (July 2023) and LAFCO 21-06 staff report (March 2022)
CEQAnet: SCH 2025070073, SCH 2025061283, SCH 2022060176, SCH 2003082046, SCH 2016052054
County Ordinance Code via GoCodebook: P-1, N-B, -CE, Chapter 88-32
Contra Costa Clerk-Recorder, Documentary Transfer Tax

Note: We did not verify the zoning of the main shopping centers, the outcome of the 2022 boat shop application, Delta Protection Commission zone status or FEMA flood zones. The P-1 chapter text was not available online.

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

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