A Planned Unit Development (PUD) is a type of real estate development project on a large, contiguous tract of land that has been approved for a master site design and grouping of structures. A PUD can be a small, residential-only development, or it can include amenities and business structures such as shops, restaurants and grocery stores.
A PUD development often deviates from standard zoning laws. Because of this, the master plan for the site must be approved by the local municipality. PUD developments often involve changes in building setbacks, height limits and lot coverage to encourage development that protects natural land features, conserves energy and provides for common open spaces.