The D&R Canal Commission administers a land-use regulatory program within the area where new development could have drainage, visual or other ecological impact on the Canal Park. The area within which there could be a drainage impact is almost 400 square miles, including parts of Mercer, Hunterdon, Somerset, Middlesex and Monmouth Counties. Major projects (those that involve an acre or more of impervious surface as of 1980) must meet the Commissions standards for managing storm water runoff.

If a project of any size is proposed for that area that is within 1,000 feet of the canal, it is reviewed for its visual impact on the park. Further, the Commission reviews large projects that are within a mile of the park for their traffic impact, and the Commission requires the preservaton of corridors along the major streams that enter the park.