Chapel Hill, population 60,988 (2018), lies ten miles west of Durham, North Carolina. It is home to the University of North Carolina, one of the three major universities that form North Carolina’s Research Triangle. In 2017, the town adopted a TDR ordinance aimed at preserving watersheds. 

The sending area is land in the Resource Conservation District which is intended to preserve water quality, secure FEMA designated floodplains, protect against flood damage, guard against erosion/sedimentation, and conserve natural plant communities and wildlife habitat. Development potential is the number of dwelling units allowed on a sending site in that district.

Receiving sites can be located in twelve districts: Town Center, Transit-Oriented Development, Community Commercial, Neighborhood Commercial, Office/Institutional 1, Office/Institutional 2, Office/Institutional 3, Industrial, Materials Handling, Mixed-Use OI-1, Mixed-Use R-1 and Mixed-Use Village.

The receiving site can use TDRs based on a rezoning that carries the condition that a perpetual restriction must be placed on sending site. No subdivision or construction can occur until that condition has been satisfied.