The Salish Sea islands are a special part of our province and the world. They are home to lush rain forests, pristine streams, and a wide diversity of wildlife. Although much of this territory is privately owned, it can still be preserved and protected.

The Islands Trust is a special-purpose government established in 1974 in response to concerns over potential environmental effects of residential subdivisions on British Columbia’s Gulf Islands.¹ Pursuant to the Islands Trust Act (Act), the Islands Trust has near-exclusive authority to make local land-use and subdivision regulations, effectively replacing the regional district’s authority in this area.

The Islands Trust’s legislative mandate to “preserve and protect” means that land-use decisions often emphasize environmental protection, character preservation, and stewardship of the Gulf Islands’ unique and sensitive ecosystems over growth and development.

As a result, properties within the Islands Trust are often subject to tighter land-use, development, subdivision, and density controls compared to other BC markets. REALTORS® working with Islands Trust properties should consider how its unique regulatory framework can affect the transactions in which they are involved.

Where Is the Islands Trust?

The Islands Trust area covers an area of 5,200 square kilometres, encompassing the waters and islands of the Salish Sea between Southern Vancouver Island and Mainland BC.² Jurisdiction is divided into 13 Local Trust Areas (LTAs) and one Island Municipality (Bowen Island):

• Ballenas-Winchelsea Islands
• Bowen Island
• Denman Island
• Gabriola Island
• Galiano Island
• Gambier Island
• Hornby Island
• Lasqueti Island
• Mayne Island
• North Pender Island
• Salt Spring Island
• Saturna Island
• South Pender Island
• Thetis Island

To view a list of islands and their corresponding LTAs, REALTORS® can use the Find Your Local Trust Area tool available on the Islands Trust website.

Islands Trust Jurisdiction

The Islands Trust’s land-use authority is exercised through 12 Local Trust Committees (LTCs), each responsible for its own LTA. The Ballenas-Winchelsea LTA does not have a standalone LTC, and the Islands Trust Executive Committee acts as the de facto LTC.³

Similarly, the municipality of Bowen Island does not have a LTC, and the Bowen Island Municipal Council acts as the local planning authority. While Bowen Island has the full functions of a municipality, it must have regard for the object of the Islands Trust in its actions, bylaws, and permit decisions. For example, unlike municipalities outside the Islands Trust, Bowen Island submits its Official Community Plan bylaws to the Islands Trust Executive Committee for approval.⁴

While the larger regional districts within the Islands Trust area remain responsible for service delivery and infrastructure (except for the Bowen Island Municipality, which operates its own local services), all LTCs and island municipalities serve as distinct local planning authorities. Specifically, each LTC and island municipality is responsible for:

• preparing and adopting Official Community Plans (OCPs), including the designation of Development Permit Areas (DPAs);
• creating and passing zoning and subdivision bylaws;
• issuance of development permits;
• creating and passing soil removal bylaws; and
• reviewing and issuing Temporary Use Permits (TUPs).⁵

Islands Trust Land Use and Planning Decisions

Land use decisions within the Islands Trust area differ fundamentally from those in other parts of BC because, pursuant to the Act, the Trust’s statutory mandate is to “preserve and protect the trust area and its unique amenities and environment.” While regional districts often take a more growth-oriented approach, the Islands Trust prioritizes ecological preservation in zoning, density, and development decisions.

A leading example is the legal battle between forestry giant MacMillan Bloedel and the Galiano Island Trust Committee (GITC) in the 1990s.⁶ Beginning in the 1950s, MacMillan Bloedel acquired substantial portions of Galiano Island for forestry and, by the early 1990s, owned approximately 55 per cent of the island. When the company sought to subdivide and sell its forest lands for residential development, the GITC responded with stringent zoning bylaws that removed the previously permitted use of one-family dwellings and substantially increased minimum parcel sizes.

MacMillan Bloedel successfully challenged the bylaws at the BC Supreme Court, which found that they exceeded the trust committee’s powers and amounted to de facto expropriation without compensation. However, the BC Court of Appeal overturned that decision two years later. In doing so, it established that LTCs have broad statutory authority to enact zoning bylaws within their legislative mandates, even where those bylaws deliberately disrupt commercial activities or prevent proposed residential development. The BC Court of Appeal decision abruptly halted subdivision plans for the landowners who had purchased lots from MacMillan Bloedel following the trial decision in 1993.⁷

Subsequent case law has consistently reaffirmed the authority of LTCs to enact and enforce land-use bylaws consistent with the Islands Trust mandate.⁸ Most recently, in 2025, the BC Court of Appeal rejected a challenge by private owners of the same former MacMillan Bloedel forestry lots, confirming that local zoning prohibitions prevailed over modern provincial forestry regulations permitting residential use on managed forest or forest reserve land.⁹ Therefore, residential development on those lands remains prohibited to this day.

REALTOR® Tips

Working with properties within the Islands Trust area may involve specific considerations and additional regulatory due diligence. Consider the following tips when dealing with these unique properties:

1. REALTORS® are generally expected to have basic working knowledge of land-use bylaws while also recognizing the limits of their expertise pursuant to Section 30(d) of the Real Estate Services Rules.¹⁰ Before proceeding with a transaction involving property within the Islands Trust area, carefully consider whether you have the requisite knowledge and expertise to competently assist your client.¹¹ Where appropriate, recommend independent legal advice and / or consider referring the client to another REALTOR® with relevant local expertise.

2. REALTORS® should recognize that each LTA has its own independent land-use bylaws that are distinct from those of its regional district or surrounding LTAs. Due to the Islands Trust's “preserve and protect” mandate, regulations governing building dimensions, lot coverage, short-term rentals, and secondary suites are frequently more restrictive. REALTORS® should not assume that the regional district’s bylaws apply, nor should they rely on bylaws or regulatory precedents of neighbouring islands.

3. REALTORS® should familiarize themselves with the applicable OCP for the property and LTA in which they are dealing. OCPs commonly highlight DPAs designed to safeguard sensitive ecosystems, protect development from hazardous conditions, or promote energy and water conservation.¹² If a property falls within a DPA, specialized permits may be required prior to altering land, removing trees, excavation, subdivision, or constructing / modifying a structure. REALTORS® should be aware that properties within a DPA may be subject to more stringent compliance criteria and consider advising their clients to obtain independent advice on the applicable development permit guidelines where appropriate.

4. REALTORS® should remember to review title. Conservation covenants are common legal tools used by the LTCs to protect sensitive ecosystems and biodiversity. Conservation covenants can restrict or prohibit harvesting, tree removal, excavation, landscaping, and development. REALTORS® should be on the lookout for registered covenants, easements, rights of way, and other charges on title and recommend that their clients obtain legal advice regarding their impact.

5. REALTORS® should consider their disclosure obligations pursuant to Section 59 of the Real Estate Services Rules,¹³ which requires licensees to disclose known material latent defects (MLDs). In particular, a lack of appropriate permits respecting the real estate – or circumstances affecting the real estate that a local government or authority has notified the client or licensee must or should be remedied – may constitute an MLD.

6. REALTORS® should recommend including appropriate subject conditions to allow sufficient time for their clients to conduct the necessary searches and investigations, including feasibility and land-use requirements, if applicable. REALTORS® should be mindful that subject periods may also need to be lengthier to accommodate such things as septic inspections, bylaw review, zoning verification, water / septic availability, quality and capability, and assessments by feasibility experts, particularly when compared to transactions elsewhere in the province.

7. REALTORS® should be aware that many coastal regions in BC (including the Islands Trust area) contain protected archaeological sites that may delay or restrict development. Similarly, LTCs have the authority to manage heritage conservation within their LTA. For more information about archaeological or heritage conservation, see the recent Legally Speaking article #595, Heritage and Archaeological Conservation Basics for REALTORS®.

8. REALTORS® should take the time to understand their clients’ intended use of the property. Properties within the Islands Trust are often subject to more restrictive regulations, particularly with respect to development and commercial activity, such as short-term rentals. Understanding the client’s goals and intended use can help REALTORS® identify potential zoning or regulatory issues early, avoid costly surprises, and recognize when additional advice from qualified professionals may be appropriate.

9. REALTORS® should exercise caution when making representations about properties within the Islands Trust, especially regarding development potential or permitted uses. REALTORS® should not assume that a property’s current use, or the use of neighbouring properties, is permitted on the subject property. Existing uses may be authorized under different regulatory circumstances, including through TUPs, and may not be indicative of permanent allowances.  

Where appropriate, REALTORS® should review the applicable zoning and land-use regulations and make inquiries with the relevant local authority. REALTORS® should also recommend that clients independently investigate matters that may affect the property’s intended use or development potential and obtain advice from appropriate professionals where necessary.

10. REALTORS® should be aware that Section 32 of the Act provides that a person must not begin construction on land within an LTA that is not covered by a zoning bylaw, unless construction has been approved by the LTC. Section 4 of the Islands Trust Regulations¹⁴ provides for limited exceptions, including, in certain circumstances, for a dwelling, small recreational cottage not exceeding 400 square feet in floor area, or accessory structure. Given this unusual statutory framework, however, REALTORS® would be wise to advise their clients to obtain independent legal advice when dealing with an unzoned parcel of land.

Final Reflections

REALTORS® should recognize and be prepared for the unique regulatory framework, intricacies, and considerations that can arise when working with properties within the Islands Trust area. An understanding of local land-use regulations and tools can help REALTORS® better serve their clients, manage expectations, and identify potential issues before they become costly surprises.

Where a matter falls outside a REALTOR®’s expertise, REALTORS® should recommend appropriate independent professional advice pursuant to Section 30(d) of the Real Estate Services Rules¹⁵ or refer the client to another licensee with relevant local knowledge and expertise.

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	1.	Overview Of Islands Trust | About Islands Trust | BC Government Agency.
	2.	Ibid.
	3.	Island Trusts Act, [RSBC 1996] c.239. s. 29. and BC Government Information Page.
	4.	Islands Trust Webpage-Bowen Island.
	5.	Ibid.
	6.	Macmillan Bloedel Ltd. v. Galiano Island Trust Committee, 1993 CanLII 1645 (BCSC) and Macmillan Bloedel Ltd. v. Galiano Island Trust Committee, 1995 CanLII 4585 (BCCA).
	7.	Islands Trust News Release (August 24, 2023).
	8.	See, for example, North Pender Island Local Trust Committee v. Conconi, 2010 BCCA 494, Stoneman v. Denman Island Local Trust Committee, 2013 BCCA 517, and others.
	9.	Galiano Forest Lot Owners Association v. Galiano Island Local Trust Committee, 2025 BCCA 15 and Islands Trust News Release (February 6, 2025).
	10.	Real Estate Services Rules (Rules), BC Reg. 209/2021, s. 30(d).
	11.	Rules, s. 34.
	12.	Islands Trust-Development Permits Information Sheet.
	13.	Rules, s. 59.
	14.	Islands Trust Regulations, B.C. Reg. 119/90.
	15.	Rules, s. 30(d).

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