Commercial Real Estate in Redwood Valley: East Road Downtown, Water Supply and Zoning

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

Redwood Valley lies about eight miles northeast of Ukiah, split by the upper Russian River and Highway 101, with a small downtown at East Road and School Way and a strip of shops just south of it. Commercial property here is mostly neighborhood retail and service buildings on East Road, contractor and light industrial yards, and vineyard and farm parcels across the valley. Redwood Valley is unincorporated, so Mendocino County controls zoning, and its water supply has a history of tight limits that any buyer should check early.

Who controls the parcel

Mendocino County Planning and Building Services applies Division I of Title 20, the Inland Zoning Code, which the state notice of determination shows was updated in full on September 10, 2024. Redwood Valley’s land use policies are the CP-RV policies in General Plan Chapter 6.

Special districts, per Mendocino LAFCo’s special districts list:

Redwood Valley County Water District (RVCWD) supplies domestic and agricultural water. LAFCo’s 2013 Ukiah Valley review says it was incorporated January 16, 1964 and serves roughly 15 square miles.
Redwood Valley-Calpella Fire District provides fire protection.
No sewer district serves Redwood Valley; the LAFCo list shows none, and the General Plan encourages RVCWD to pursue sewage treatment.

The water district is now part of the Ukiah Valley Water Authority, a joint powers authority described on the City of Ukiah’s UVWA page. Its members are the City of Ukiah and the Millview, Redwood Valley, Calpella and Willow county water districts. UVWA became responsible for water rates and fees on January 1, 2025, and City of Ukiah employees now run day-to-day operations. The old Redwood Valley district office stopped taking payments that day, so water questions now go to the City’s utility customer service.

Redwood Valley zoning for commercial, industrial and mixed use

The inland district list gives these business districts. We did not verify parcel-level zoning in Redwood Valley; get a County Letter of Zoning.

District	Intended uses	Notes for a water-only valley
C-1 Limited Commercial (Ch. 20.088)	Local retail, offices, restaurants and services	With water but no sewer, 12,000 sq ft minimum lot; 35 ft
C-2 General Commercial (Ch. 20.092)	Full retail and services at community cores; lodging permitted	Same 12,000 sq ft standard; 50 ft
R-C Rural Community (Ch. 20.084)	Mixed homes, shops and limited industry	Retail, repair and restaurants by administrative permit; custom manufacturing by use permit
I-1 Limited Industrial (Ch. 20.096)	Light industry and yards	General Plan wants it outside the downtown core
I-2 General Industrial (Ch. 20.100)	Heavier industry
A-G Agricultural (Ch. 20.052)	Vineyards and farms; winery processing permitted	40-acre minimum; farm sales by administrative permit

The C-1, C-2 and R-C chapters drop the commercial minimum lot size only where both water and sewer districts serve the parcel. Redwood Valley parcels inside the water district but on septic fall under the 12,000 square foot rule; parcels outside the water district need 40,000. A-G permits winery packing and processing outright and needs a use permit for limited lodging.

The East Road downtown and what the General Plan wants

Downtown first. Goal CP-RV-1 focuses new commercial development in the East Road downtown and in the areas north and south of School Way, where services exist, and supports smart growth principles. CP-RV-2 encourages mixed-use, commercial and public uses in the core.
Infill and facades. CP-RV-3 promotes infill that improves downtown’s appearance, and Action CP-RV-3.1 suggests facade work on East Road buildings. Action CP-RV-3.2 calls for screening the electric substation southeast of downtown.
A key corner. CP-RV-5 encourages a mixed retail and residential project at the northwest corner of East Road and School Way.
Streetscape and parking. CP-RV-6 and CP-RV-7 call for East Road landscaping, pedestrian access and lighting, and moving parking off the East Road frontage. A buyer planning a front parking lot on East Road should expect pushback.
Industry away from the core. CP-RV-4 places new industrial development outside the downtown core where visual impact is minimal.
Keep farmland. The Redwood Valley goals keep Agricultural zoning on resource lands and avoid incremental increases in rural residential density.

Water limits and septic

The 2013 LAFCo review reported 1,335 RVCWD connections, about 1,135 residential and 200 agricultural, and described a supply problem: the district’s right to divert up to 4,900 acre-feet from Lake Mendocino applies only when flow at the forks of the Russian River exceeds 72,000 acre-feet, which the review said happens about 70 days in wet years and only a day or two in dry years. At that time, the district was under a moratorium on new domestic and irrigation connections. Its treatment plant was rated at 1.7 million gallons per day, with a 68 acre-foot untreated water reservoir.

That review is from 2013, and the district has since joined UVWA, which filed a state SAFER grant application in July 2025 for regional system integration. We did not verify whether any moratorium remains. Ask UVWA in writing whether a new or larger commercial connection can be served before you go hard on a purchase.

Without sewer, a restaurant, brewery, laundromat or other high-flow use needs septic approval from County Environmental Health.

Transfer tax, business tax and property tax

No city transfer tax applies in Redwood Valley. Fidelity National Financial’s transfer tax guide (rev. January 2026) lists Mendocino County’s rate at $1.10 per $1,000, customarily paid by the seller. The County Recorder collects it but does not post the rate. Lodging operators remit transient occupancy tax and a Business Improvement District assessment through the Treasurer-Tax Collector. A change of ownership generally triggers Proposition 13 reassessment.

Due diligence that matters in Redwood Valley

Ask UVWA whether the parcel has an active connection and whether new or larger service is available.
Inspect and size the septic system for the planned use.
Order a County Letter of Zoning and confirm any combining districts.
For East Road sites, read CP-RV-3 through CP-RV-7 before designing parking or facades.
For vineyard parcels, confirm agricultural water service and any agricultural preserve contract.
Work through our commercial due diligence checklist.

Questions people ask

Who provides water in Redwood Valley?

The Redwood Valley County Water District, now a member of the Ukiah Valley Water Authority, with operations run by City of Ukiah staff.

Is there sewer in Redwood Valley?

LAFCo’s district list shows no sewer district for Redwood Valley, and businesses rely on septic systems.

Can I get a new water connection?

Ask UVWA. The 2013 LAFCo review reported a moratorium on new connections, and we did not verify its current status.

Where does the County want new commercial buildings?

In the East Road downtown and near School Way, under Goal CP-RV-1.

Can I put an industrial yard on East Road downtown?

The General Plan places new industrial development outside the downtown core.

What is the minimum lot size for a commercial lot?

With water service but no sewer, 12,000 square feet in C-1, C-2 and R-C.

Does Diamond handle commercial property in Redwood Valley?

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

Sources & notes

Water figures are from LAFCo’s 2013 review; current connection policy was not verified. This page is general information, not legal or tax advice. Last reviewed October 2026 by Matthew Martinez.

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