In December 1999 Wisconsin enacted landmark legislation that sets guidelines, funding, and incentives for "smart" local comprehensive planning. The legislation provides several million dollars to local governments to develop plans that must then be the basis for land use decisions in nearly all communities by 2010.

By that same year, local governments must also designate Smart Growth Areas for state and local infrastructure investments and pass smart growth ordinances with the help of the University of Wisconsin.

In 2005, Wisconsin communities will also be eligible for additional state aid in the form of a Smart Growth Dividend. Explicit smart growth goals for local plans include promoting urban redevelopment, protecting farmland and natural areas, and using development patterns with lower public service costs.