Leading housing groups are disappointed in the Administration's rulemaking that defines "waters of the United States" (WOTUS) under the Clean Water Act (CWA).

The rule was issued by the Environmental Protection Agency and the Army Corps of Engineers Dec. 30. It continues to rely on a legal theory of CWA federal jurisdiction known as the "significant nexus test" to potentially assert federal control over isolated wetlands, features that contain water only in response to rainfall events, and ephemeral streams impacting numerous activities, including home building.

National Association of Homebuilders (NAHB) called the nexus test, "confusing" and "flawed."

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