Human uses of land and water are directly linked and must, therefore, be managed with each other in mind. This paper puts forward an approach for integrating sustainable water resource management into local land use decision-making in the Potomac basin. The approach includes developing a clear understanding of the current regulatory, programmatic, and financial approaches to land use management; identifying opportunities from innovation; and developing a flexible, stakeholder-based framework for moving forward. Four opportunities for innovation were identified in the Potomac basin utilizing this approach, including enhancing coordination and access to information, promoting incentives to achieve desired outcomes, encouraging and promoting innovation, and integrating programs to achieve multiple objectives. The successful integration of land and water decision-making requires a sustained, long-term commitment to improvement rather than a one-time fix mentality. Initial steps for implementation include identifying and engaging diverse partners, as well as establishing channels for information dissemination. The lessons learned from this work may prove valuable to decision-makers in other regions to holistically manage diverse land and water resources.