Recent land use legislation pays particular attention to the coastal zone where age‐old conflicts have recently accelerated. Flexibility is required in policy because visible conflicts are tied into complex physical and social systems which may require changing patterns of land use over time. Public policy is altering property rights and a thorough understanding of the economic and social roles played by those rights is required. Economic models can be used to understand some major changes such as types of alteration of the environment, but may be ignored or misused unless a better understanding of coastal decision processes is developed.