Commercial Real Estate in Inverness: Coastal Village Zoning, Water and Lodging Rules

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

Inverness is a small village on the west shore of Tomales Bay, with a short commercial strip along Sir Francis Drake Boulevard: a store, a few restaurants, lodging, a yacht club and a boatyard tradition, all within the Coastal Zone. Commercial property here is scarce, and almost every change of use or building project needs a Coastal Development Permit. Water supply comes from a small local district, and wastewater goes to on-site septic systems. Confirm zoning, coastal permit history and water service for each parcel with Marin County and the Inverness Public Utility District.

Who controls the parcel

Inverness is unincorporated. Marin County regulates land use under its coastal zoning code (Title 20) and the Local Coastal Program. The county’s Local Coastal Program Land Use Plan Unit II, adopted in 1980 and certified in 1981 with amendments through 2010, describes the west shore’s development as clustered around the Inverness Yacht Club, Drake’s Highway Garage and the Inverness Store. The 2019 certified LCP Land Use Plan includes Inverness among its community-specific policy areas, with its own historic area map. The county also lists an Inverness Ridge Communities Plan from 1983.

Two local agencies matter on every deal:

Inverness Public Utility District. Per Marin LAFCo and the district itself, IPUD provides both water and fire protection over roughly 2.5 square miles. It has 519 water connections and draws its supply from springs and streams on Inverness Ridge, from a watershed of about 580 acres on Mt. Vision.
Fire. IPUD runs the Inverness Volunteer Fire Department. LAFCo’s August 2026 fire services study lists it with a PPC rating of 5/5x, 2 full-time staff, 4 part-time staff and 20 volunteers.

Inverness zoning for commercial, industrial and mixed use

Coastal parcels use the "C-" versions of county districts. The table shows what the coastal use tables in Chapter 20.62 allow. We did not confirm which are mapped in Inverness, so check the zoning map.

District	Intended uses	Notes from the coastal tables
C-VCR Village Commercial/Residential	Village main streets serving residents and visitors	Restaurants up to 40 patrons, retail, offices and B&Bs with up to 3 rooms are principal permitted. Bars, hotels, larger restaurants and marinas need a use permit. Housing limited in the mapped commercial core
C-H1 Limited Roadside Business	Rural roadside commercial	Small restaurants permitted; most else by use permit; no bars
C-CP Planned Commercial	Planned retail and office	Retail and offices principal permitted
C-RCR Resort and Commercial Recreation	Visitor resorts	Hotels and motels principal permitted
C-RSP / C-RA residential	Mostly homes on the ridge	A 2026 county permit for 195 Park Avenue shows C-RSP-1 zoning in the Inverness Ridge plan area

There is no industrial zoning. Boat storage and repair have historically operated under specific approvals, so confirm the legal status of any marine use.

The Inverness village strip and Tomales Bay

Main street parcels. In C-VCR, the county limits housing in the mapped village commercial core to upper floors or rear spaces, keeping street-facing ground floors for commerce. A buyer converting a storefront to a residence should expect a hard review.

Shoreline access. The LCP Unit II lists specific APNs near Children’s Beach, the library and the Inverness Store where lateral and vertical public access is to be maintained. A bayfront commercial parcel may carry access conditions from past permits. Ask for every recorded coastal permit and offer to dedicate.

Coastal permits and appeals. Most development needs a Coastal Development Permit under Chapter 20.68. In the coastal tables, decisions on use-permit uses carry an appealable coastal permit, and principal permitted uses can be appealed only in mapped appeal areas. Even small work counts: a 2026 permit at 195 Park Avenue needed a CDP because it altered a pre-1930 building and enlarged a septic system.

Lodging, food uses and water constraints

Short-term rentals. Inverness has its own STR township cap. The county’s STR administrative procedures list 93 initial licenses falling to 86. Permitted inns, motels and B&Bs are exempt from the STR license, which is why legally established lodging is the most valuable commercial use here.

Restaurants and food. Restaurants for 40 patrons or fewer are principal permitted in C-VCR. Any larger restaurant, liquor service or entertainment needs a use permit plus a CDP. Septic sizing usually sets the real seat count.

Water. IPUD’s regulations cover new service connections, multiple connections on one parcel and water shortage emergencies; see the IPUD water regulations index. LAFCo’s West Marin service review (March 2022 draft) recommended that IPUD explore added storage and emergency interties. Confirm with IPUD before assuming a water-intensive use is possible.

Transfer tax, business tax and property tax

Inverness pays only the county transfer tax, $0.55 per $500 net of assumed liens, per the Marin County Recorder’s transfer tax sheet. Businesses need a county business license, renewed by July 31; lodging pays $15 per unit per year, and short-term stays also need a transient occupancy tax certificate. A sale generally triggers Proposition 13 reassessment.

Due diligence that matters in Inverness

Start with our commercial due diligence checklist, then add:

Pull every Coastal Development Permit and condition for the parcel, including access easements.
Confirm the district and whether the parcel is in the C-VCR commercial core.
Ask IPUD about the existing meter, any added service, and shortage rules.
Get county Environmental Health septic records and capacity for the intended use.
For lodging, confirm it is a permitted inn, motel or B&B rather than an STR.
Check flood, sea level and bluff exposure along the shoreline.

Questions people ask

Who regulates commercial property in Inverness?

Marin County, through its coastal zoning code and Local Coastal Program. Most projects also need a Coastal Development Permit.

Who provides water and fire service?

The Inverness Public Utility District, which runs both the water system and the volunteer fire department.

Can a café open in the village?

A restaurant for up to 40 patrons is principal permitted in C-VCR, but it still needs a coastal permit and adequate septic capacity.

How many short-term rental licenses does Inverness have?

The county lists 93 initial licenses, falling to 86.

Is there sewer service?

No. Properties use on-site septic systems.

Is there a city transfer tax?

No. Only the county rate applies.

Does Diamond handle commercial property in Inverness?

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

Sources & notes

Note: We did not open the Inverness Ridge plan, the 2019 LUP’s Inverness policies, the zoning map or the text of IPUD’s connection regulations.

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

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