This paper addresses some of the common environmental issues associated with conventional development, including water supply, water quality, energy, transportation, and open space. It describes an alternative direction that development can take, which can lead to greater resource efficiencies in master planned communities that provide a better quality of life with a reduced environmental impact. It emphasizes the importance of ensuring long-term adherence to measurable, quantitative goals for energy and water consumption and water quality. Throughout, a case study of the Restoration community in Volusia County, FL is described to illustrate some approaches for establishing performance-based standards in new master planned residential communities.