When a community is developed on a single large parcel that will be divided into smaller lots or units, subdivision law governs the process. Subdivision approval typically involves planning commission review, compliance with minimum lot size and frontage requirements, dedication of road rights-of-way and utility easements, and sometimes environmental review.

An important alternative to full subdivision is the use of a single parcel with a shared land ownership structure (CLT, cooperative, TIC) that avoids the subdivision process entirely. This approach is common in intentional communities and can dramatically simplify the development approval process. The tradeoff is that individual units may be harder to finance with conventional mortgages and less liquid in the resale market.