Insight by Morningstar Law Group Partner Molly Stuart
There has been some confusion about whether the City of Raleigh has halted annexations. In short: Raleigh has not enacted a moratorium. But the City has temporarily narrowed eligibility for certain annexation requests.
What’s Changed?
Raleigh’s annexation policy generally allows annexation eligibility based on several factors—such as whether the property is in the City’s extraterritorial jurisdiction (the “ETJ”), within an annexation agreement area, or directly touches city limits.
However, effective October 26, 2025, and for a 12-month period, Raleigh adopted a temporary freeze on one path to eligibility. Properties can no longer qualify for annexation solely because they become newly contiguous to the city limits. In other words, when the City annexes a parcel, that action will not make additional adjacent parcels automatically eligible during the freeze period. This appears in Resolution No. (2025) 717, which contains a map of the eligible area, called the “Priority Annexation Area.”
Why Did the City Do This?
The City wants to stabilize boundary changes while staff reviews broader policies related to growth, annexation, and water/sewer service. Possible policy revisions may follow, but none have been announced yet.
What This Means for Developers
- Annexations are still happening, including for properties within the ETJ and adjacent to city limits as of October 25, 2025.
- Projects relying on new contiguity-only eligibility will be ineligible for the term of this policy.
- Projects qualifying under other criteria—such as ETJ status, pre-existing contiguity, or annexation agreement areas—may still move forward.
- Look out for potential changes to Raleigh’s long-term growth and utility extension policies once staff completes its evaluation.
This policy does make it less clear when annexation is available for a property. If you’re ready to dig in, let’s talk. mstuart@morningstarlawgroup.com; 919.890.3318.
