"Very little benefit to the town," the town attorney said, but also "no detriment." In July 2026 a council member asked what Holly Springs gained by approving the Meridian at Sunset Commons rezoning before the infrastructure existed. That was the answer. Holly Springs Update reported that the development agreement already blocked construction until there was sewer capacity to serve the site.

So the council approved roughly 450 apartments on 30.6 acres at 4950 Optimist Farm Road by a 3–1 vote, and nothing can be built there yet. The meeting summary on NC govwatch puts the count at 458 units. Either way, the lesson is the same for anyone comparing Triangle suburbs. In Holly Springs, a rezoning headline tells you what's allowed. Gallons per day tell you what gets built and when.

The Gap Between a Rezoning and a Building Permit

The Meridian site is waiting on three pieces of infrastructure. Two existing pump stations need upgrades, and a new Eastern Regional Pump Station has to be built. Until then, the site and much of the Northeast Gateway area can't be served. The development agreement says the town "would not ordinarily grant zoning approval" under current conditions, and it bars building permits until there's enough capacity. At the same July 21 meeting, council members said other commercial development in the Northeast Gateway was also waiting on a sewer solution.

Some of the promised improvements are on hold too. The developer committed to extend Lassiter Road through the property, at an estimated $5 million with no town funding, and to build a greenway connection. The usual frontage improvements on Optimist Farm Road and Sunset Lake Road are deferred to a future commercial project on a shared parcel at the intersection, "once sewer capacity is available."

If you're shopping near Sunset Lake Road and Optimist Farm Road, both the apartments and the road work around them depend on a pump station that has no published completion date.

How Holly Springs Hands Out Capacity

Holly Springs has a written rule for this. It's the Water Resource Management Policy, called the Utility Allocation Policy in the town's development code, and the town's allocation request form says the town adopted it on July 1, 2023. The policy itself works like a yearly budget:

• One release a year. New capacity is released at the start of each fiscal year, in the first week of July. If projects ask for more than is available, the ones that otherwise qualify go on a waiting list for the next release.
• Public projects come off the top. 30% of each year's release is held back for significant public facilities and economic development projects, with a floor of 33,000 gallons per day.
• Housing gets most of the rest. All residential projects together can receive up to 70% of what's left, with a floor of 46,900 gallons per day.
• Apartments are capped. Attached homes and apartments can use at most 20% of the residential flow in a year. One contiguous apartment project can borrow against future years' share.
• Big subdivisions are phased. Any detached-home project with more than 75 lots has to be split so no more than 75 lots come up for allocation in a single fiscal year.

A project that needs sewer service has to win Utility Allocation Approval from the Town Council before the town will accept its civil construction drawings. For anyone buying new construction, the 75-lot rule matters most. A builder's community map can show the whole neighborhood, but the town releases it in pieces, one fiscal year at a time.

How It Played Out in 2025 and 2026

Here's where recent proposals stand in council records and local reporting.

Even approved projects show the metering at work. The 142 detached lots at Seasons at Wilbon are nearly double the 75-lot yearly phase limit. The project's size triggered the policy's extra requirements, and the developer picked stormwater wetlands, sustainable design features and 25% more open space than the ordinance requires. Staff also said that under existing zoning, someone could build about 40 homes on the site by right, with minimal road improvements. Rezonings are how the town gets turn lanes and widened frontage when NCDOT has no funded project on the corridor.

Powell Place followed the same pattern. In May the applicant offered about 880 feet of road widening, turn lanes and $100,000 toward a future traffic signal, and the council still deferred it. It passed two months later, once the Rouse Road shoulder was added.

When the Plumbing Catches Up

Capacity does grow. It just grows in large steps, years apart.

On the wastewater side, the town is expanding the Utley Creek Water Reclamation Facility. WRAL described the $240 million project as the largest infrastructure project in Holly Springs history. According to S&P Global Ratings, it takes capacity from 6 to 8 million gallons per day. A town presentation from August 2024 estimated substantial completion at the start of the second quarter of 2028. Treat that as an older estimate, not a confirmed opening date. A bigger treatment plant also doesn't solve the Northeast Gateway problem on its own. That area still needs pipes and pump stations to carry the flow there.

On the drinking water side, Holly Springs partnered with Sanford and Fuquay-Varina to expand Sanford's water filtration plant from 12 to 30 million gallons per day. Holly Springs' share of that is smaller than the headline. The town has 10 million gallons per day allotted from Harnett County and gains another 4 from the Sanford plant. The project's own timeline listed spring 2028. The News & Observer later reported early 2029, so the date isn't settled. The town also put $45 million toward a 14-mile water line from Sanford.

Town Manager Randy Harrington told WRAL the town has about 55,000 people now and expects 60,000 to 65,000 by 2030. If those projections hold, the capacity coming online in 2028 and 2029 will start filling up as soon as it opens.

Who Pays for the Expansion

Here's where the issue reaches buyers who will never touch new construction. WRAL reported that the August 2026 increase wasn't about clean-water infrastructure for current residents. It was to prepare for expected growth. The town has $500 million in utility upgrades underway or planned. S&P puts the utility's capital plan at $563 million for 2026 through 2031, mostly paid for with debt, and expects about $120 million more in borrowing in 2027.

Ratepayers cover that debt. The fiscal 2026–27 budget raised typical residential water and wastewater charges by $11.89 a month. WRAL reported the typical combined water and sewer bill at about $111 a month after the increase. Harrington said more increases are coming. "There will be a series of continued rate increases over the next several years," he told WRAL. S&P's March 2026 report lists planned combined increases of 12% in 2027, 12% in 2028 and 9% in 2029. It also noted 15% increases in 2024 and 2025 and a slight rise in delinquent accounts.

The one-time fees on new homes didn't move. Holly Springs' fiscal 2026 and 2027 fee schedules show that, for a standard 3/4-inch meter, the system development fees stayed at $6,162 for water and $5,538 for sewer. S&P counts those fees toward debt coverage, but the yearly increases are landing on the monthly bill. If you're comparing Holly Springs with a neighboring town, put the utility bill trend in your carrying-cost math right next to the 34.35-cent property tax rate, which held steady this year.

Questions to Ask Before You Write an Offer

1. Is the land next to your shortlisted home rezoned, allocated, or permitted? Each step means something different. Meridian has a rezoning but can't get permits. Seasons at Wilbon has its allocation, which moves it closer to construction.
2. For new construction, which phase is the lot in, and does that phase have its allocation yet? With the 75-lot rule, a large community's later sections may not be allocated yet.
3. What fees will a custom build or addition owe? Holly Springs Update reported in September 2026 that a state law change requires towns to post fee schedules, give an estimate within 10 business days of a completed application, and issue a final, binding fee statement at approval. The town's fiscal 2027 schedule lists a flat $1,200 residential permit fee for homes up to 3,000 square feet.
4. What does the seller's last year of utility bills look like? It gives you a starting number, and the planned increases tell you which way it's likely to go.

Quick Answers

Are Holly Springs watering restrictions in effect? Stage 1 restrictions began July 6, 2026, and were lifted August 21, when the town returned to Stage 0. Check the town's drought page for the current status.

Does a council vote against a project mean nothing gets built there? Not necessarily. At Seasons at Wilbon, staff said about 40 homes could be built by right under existing zoning.

Is the Eastern Regional Pump Station scheduled? No completion date has been published in the 2026 reporting on Meridian. Until one is, treat timelines for the Northeast Gateway as open-ended.

If you're weighing a Holly Springs home and want to know what council records say about the parcel across the street, or how utility costs fit into your monthly numbers, Alli Pepperling will walk through it with you before you sign anything. Selling instead? Request a free home valuation, and we'll price your home with nearby development activity in the picture.

This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.