On July 27, 2026, the Fairhope City Council voted 5–0 to adopt Ordinance No. 1880. The ordinance sets a fixed service territory for new connections to the city's sanitary sewer system. The city's own wording is direct: "new sewer service connections are not permitted outside of the designated service territory boundary."
If you're pricing a lot to build on around Fairhope, that sentence matters more than the ZIP code. Sewer access used to depend on where the pipe ran and how the city handled service outside its limits. It now depends on a line drawn on a map. Two lots a short drive apart can carry the same mailing address and very different paths to a finished house.
How the Rule Went From Temporary to Permanent
The ordinance didn't come out of nowhere. In December 2023, the council approved a resolution that kept new homes outside the city's corporate limits from connecting to city sewer. Lagniappe reported that councilors said the infrastructure couldn't keep pace with real estate development in the county. The resolution said "the explosive growth of the city of Fairhope has put heavy demands on the resources of the city to meet the sewer needs of Fairhope residents and businesses."
City records list that measure as Resolution 4950-23, "Wastewater Infrastructure and Connections Outside City Limits," dated December 11, 2023. An amendment followed on February 19, 2024 as Resolution 4986-24. It dealt with how the utility department issues availability certificates. Ordinance 1880 rescinds both resolutions and replaces them with the mapped territory.
Those details shape what a buyer has to check. The 2023 rule was keyed to corporate limits, which anyone can look up. The 2026 rule is keyed to a separate boundary. The official map, dated May 2026, shows the "Proposed Sewer Territory" and the "Corporate Limits" as two different features. Its reference roads include State Hwy 181, State Hwy 104, County Road 24, Greeno Road, and Battles Road. The map also warns against making business decisions without checking the data with the right city office. A lot purchase is exactly that kind of decision.
The territory also carries a density question. According to Citizen Portal, at a June 8, 2026 work session, city staff presented the ordinance along with a proposed limit of two units per acre outside city limits. Council members tentatively backed the limit and supported posting the map for public review. Treat the density figure as a proposal from that session. Anyone planning more than one home on a parcel outside the city should confirm what was finally adopted.
Water Has Its Own Line
Sewer is half of the utility picture, and water runs on a separate rule. A February 2024 ordinance requires property outside the city that is contiguous to city limits to annex before connecting to Fairhope's water system. Gulf Coast Media reported that existing out-of-city water connections were grandfathered. So were existing service commitments backed by an active building permit, or by a qualifying plat approval with written acknowledgment that service was available. Under that ordinance, noncontiguous outside-city parcels were not required to annex.
Put the two rules together and a single lot can come with several conditions. Water service may require annexation. Sewer service depends on the territory map. Annexation brings the parcel under city rules, so a lot outside the city has a different set of conditions to work through than one inside the city.
What Connecting Costs in 2026
Even when a lot sits well inside the territory, the one-time cost of hooking up has been under review this year. In June 2026, the council discussed raising system development charges, or SDCs, which are one-time fees for new connections to the city's water and sewer systems. Mayor Sherry Sullivan told Gulf Coast Media the increase was based on an evaluation by Jackson Thornton, which looked at the cost of expanding the treatment capacity of Fairhope Public Utilities' water system.
The proposed residential figures published with that June 16 report:
| Proposed charge, June 2026 | 1-inch meter |
|---|---|
| Water SDC, residential | $2,700, up from $2,000 |
| Residential water tap fee | $1,000 |
| Wastewater SDC | $7,460 |
These are proposed amounts, not confirmed final charges. The report noted that typical residential pipe sizes range from 3/4 inch to 2 inches. City records date the water and sewer fee ordinances, Nos. 1867 and 1868, to June 29, 2026. Amendments to both were introduced on July 27 and held over. They then appeared on the August 10, 2026 agenda for final adoption as Ordinances 1881 and 1882. The current water and sewer connection fee schedules are linked from the city's water and sewer page. Use that page for budgeting, not the June figures.
Councilman Jack Burrell explained the reasoning in plain terms: "We're just trying to make sure that we can provide water to people, reliable service and we can afford to upgrade our systems, and so these fees are necessary."
Why the City Is Drawing Lines and Spending at Once
The territory map and the fee review both come from the same constraint, which is wastewater capacity. The city's wastewater infrastructure page lists a $21.5 million wastewater budget for 2026. It also lists grant awards, including $13.5 million in RESTORE funding for lift stations, side-stream storage, and collection system rehabilitation, plus $1.15 million in ADEM and ARPA funding for treatment plant headworks upgrades. The city reports that its $4.8 million headworks project is complete, nine lift stations have been rehabilitated, and bypass pumps are going in at 12 stations. The city describes the defined service area as a way to "align new development with available infrastructure."
For a buyer, the picture is a city investing heavily in the system it already has while capping how far that system will reach. Outside the mapped territory, the city has decided capacity isn't promised.
If the Lot Falls Outside the Territory
Outside the boundary doesn't mean unbuildable. It means a different plan. Baldwin County Sewer Service lists Fairhope and Point Clear among the communities it serves, but its public list doesn't confirm availability for any particular parcel. The Alabama Department of Public Health describes septic systems as the option used where municipal sewer is unavailable or impractical. It directs property owners and their agents to the local county health department for septic information and permit records.
Either route changes the build. A septic system takes up part of the lot and has to be permitted before the design is final. A county provider connection depends on that provider's own answer for the parcel. Both are questions to settle while the lot is under contract, not after closing.
A due diligence sequence that fits the current rules:
- Find the parcel on the city's sewer service territory map, then confirm the reading with Fairhope Public Utilities at 555 S. Section Street, 251-928-8003.
- Ask for written confirmation of water and sewer availability, since the 2024 water ordinance tied grandfathered commitments to written acknowledgment of service.
- If the lot is outside city limits but touches them, find out whether water service would require annexation.
- Pull the current connection fee schedule for your planned meter size and put it in the build budget.
- If city sewer isn't available, contact Baldwin County Sewer Service about the parcel and the county health department about septic permitting before your contingency period ends.
None of this is legal advice. Ordinance text and city staff have the final word on any parcel.
Quick Answers
Does a Fairhope address guarantee city sewer? No. Ordinance 1880 ties new connections to the mapped service territory, and the map shows that territory separately from the corporate limits.
Are the 2023 and 2024 resolutions still in effect? Ordinance 1880 rescinded Resolutions 4950-23 and 4986-24 when it was adopted on July 27, 2026.
What will hookup fees be on my build? The June 2026 proposal put a 1-inch residential water SDC at $2,700, a tap fee at $1,000, and a wastewater SDC at $7,460. Amendments were scheduled for final adoption on August 10, 2026, so check the city's posted schedules for the current amounts.
When we help clients evaluate a lot around Fairhope, the sewer territory map, availability letters, and connection fees come up at the start, before anyone falls in love with a floor plan. If you have a parcel in mind and want to know what it can support, Limitless Homes can go through the utility questions with you before you commit. Contact Us to start with your lot.
