The first comprehensive attempt at development control along the Canadian Great Lakes shoreline was the 1976 lakeshore regulation policy adopted by the Regional Municipality of Haldimand‐Norfolk on the north Lake Erie shore. This innovative strategy was initiated at the municipal level as a component of the regional land‐use planning process. Determination of efficiency and effectiveness of the policy implementation process is based on analysis of permit approval files. All development applications submitted between 1976 and 1980 in the Turkey Point and Long Point Peninsulas are evaluated. Those areas, the most popular cottaging areas in the region, are most susceptible to flood and erosion hazards. Of the total applications submitted during the four‐year study period, 37 percent were in these areas. The policy was ineffective and inefficient in controlling development in the two peninsulas. Applications were approved in the majority of cases, despite regulatory prohibition of developments in hazard‐susceptible areas. There were lengthy decision‐making delays, often exceeding one year, and frequent violations of regulatory procedures. Recommendations are suggested to improve policy implementation.