In southern Rhode Island, there is growing concern that housing and recreational demands will soon overwhelm the capacity of the coastal salt ponds to absorb wastes, produce seafood, and maintain scenic qualities. As a result, coastal towns have been studying the feasibility of using land controls such as downzoning to protect these coastal amenities. The paper presents an economic analysis of the downzoning program proposed in the town of South Kingstown. Hedonic price and contingent valuation methods are used to value coastal amenities. The estimated net present value of “swimmable” water is shown to be $3.1 million.