Zoning, building permits and septic rules in Underwood, Minnesota

Underwood’s own rules

• Building permitRequired

  Construction of buildings or building additions, including decks and signs, in Underwood shoreland areas.

  • Also applies to sewage-system installation or alteration and to grading/filling activities that are not exempt under subsection 5.3.
  • Application must contain information permitting the city clerk to determine site suitability and whether a compliant sewage-treatment system is or will be provided.

  “A permit is required for the construction of buildings or building additions (and including such related activities as construction of decks and signs), the installation and/or alteration of sewage treatment systems, and those grading and filling activities not exempted by subsection 5.3 of this section.”

• Local zoningPresent (with conditions)

  Shorelands of classified public water bodies inside Underwood city limits.

  • Ordinance No. 54 applies only to shorelands of public water bodies classified in its section 4.
  • A privately created water body where there was no previous shoreland may be exempt at the governing body's discretion.

  “The provision of this ordinance shall apply to the shorelands of the public water bodies as classified in subsection 4 of this section.”

• Zoning districtsPublished (with conditions)

  Underwood shoreland areas.

  • The ordinance's land-use districts and boundaries are delineated on the official zoning map for the shorelands of the community.

  “The land use districts provided below, and the allowable land uses therein for the given classifications of water bodies, shall be properly delineated on the Official Zoning Map for the shorelands of this community.”

• Minimum lot sizeDistrict specific (with conditions)

  New single-residential lots in Underwood general-development-lake shoreland areas.

  • For sewered lakes, the sewer lot-area dimensions may be used only if publicly owned sewer service is available to the property.
  • Only land above the ordinary high-water level may be used to meet lot-area standards, and lot-width standards apply both at the ordinary high-water level and building line.

  sewered general-development-lake riparian single-residential minimum lot area: >= 15000 square feet (Publicly owned sewer service must be available.) · sewered general-development-lake nonriparian single-residential minimum lot area: >= 10000 square feet (Publicly owned sewer service must be available.) · unsewered general-development-lake riparian single-residential minimum lot area: >= 20000 square feet · unsewered general-development-lake nonriparian single-residential minimum lot area: >= 40000 square feet

  “The lot area (in square feet) and lot width standards (in feet) for single, duplex, triplex and quad residential lots created after the date of enactment of this ordinance for the lake classifications are the following:”

• Lot coverageSpecified

  Lots in Underwood shoreland areas.

  maximum impervious surface coverage: <= 25 percent of lot area

  “Impervious surface coverage of lots must not exceed 25 percent of the lot area.”

• Building heightSpecified

  Water-oriented accessory structures in Underwood shoreland areas.

  • Applies to the one water-oriented accessory structure per lot that does not meet the normal structure setback.
  • Safety rails are excluded from height; the structure also may not exceed 250 square feet and must satisfy the listed setback, visibility, use, and location conditions.

  water-oriented accessory structure maximum height: <= 10 feet (Safety rails excluded.)

  “the structure of the facility must not exceed ten feet in height, exclusive of safety rails, and cannot occupy an area greater than 250 square feet.”

• Accessory dwellingsLimited

  Guest cottages in Underwood shoreland areas.

  • A guest cottage is allowed only on lots meeting or exceeding duplex lot area and width dimensions.
  • It must be within the smallest duplex-sized lot that could be created including the principal dwelling, cover no more than 700 square feet, be no taller than 15 feet, and be located or designed to reduce visibility from public waters and adjacent shorelands.

  guest cottage maximum land coverage: <= 700 square feet · guest cottage maximum height: <= 15 feet

  “One guest cottage may be allowed on lots meeting or exceeding the duplex lot area and width dimensions presented in Subsections 5.11 – 5.12 above provided the following standards are met:”

• Who permits septicLocal (with conditions)

  Sewage treatment systems in Underwood shoreland areas.

  • The city clerk administers and enforces the shoreland ordinance.
  • Private systems must meet or exceed MPCA individual sewage-treatment-system standards adopted by reference.

  “The City Clerk is responsible for the administration and enforcement of this ordinance.”

• Septic permitRequired

  Installation or alteration of sewage-treatment systems in Underwood shoreland areas.

  • The permit application must allow the city clerk to determine site suitability and that a compliant system is or will be provided.

  “A permit is required for the construction of buildings or building additions (and including such related activities as construction of decks and signs), the installation and/or alteration of sewage treatment systems, and those grading and filling activities not exempted by subsection 5.3 of this section.”

• Off-grid sanitationLimited

  Private sewage treatment for human-occupied premises in Underwood shoreland areas where public sewer is unavailable.

  • Publicly owned sewer must be used where available.
  • Private systems must meet or exceed MPCA individual sewage-treatment-system standards and meet shoreland setback requirements.
  • Proposed individual-system sites must be evaluated; the applicant must provide soil borings and percolation tests when public information is insufficient.

  “All private sewage treatment systems must meet or exceed the Minnesota Pollution Control Agency’s standards for individual sewage treatment systems contained in the document titled “Individual Sewage Treatment Systems Standards, Chapter 7080” a copy of which is hereby adopted by reference and declared to be a part of this section.”

• Mandatory utility hookupConditional

  Premises used for human occupancy in Underwood shoreland areas.

  • Publicly owned sewer must be used where available.
  • The source does not impose a comparable mandatory public-water connection for every human-occupied premises.

  “Any premises used for human occupancy must be provided with an adequate method of sewage treatment, as follows: A. Publically owned sewer systems must be used where available.”

• Subdividing landRegulated (with conditions)

  Subdivision or platting in Underwood shoreland areas.

  • A subdivision must conform to all official controls.
  • It cannot be approved if a later variance from official controls would be necessary to use intended lots.
  • Where public sewer and water are unavailable, each lot needs domestic water supply and a compliant sewage-treatment system; holding-tank lots cannot be approved.

  “Subdivision must conform to all official controls of this community. A subdivision will not be approved where a later variance from one or more standards in official controls would be needed to use the lots for their intended purpose.”

• Permit feesPublished (with conditions)

  Zoning and utility matters inside Underwood city limits.

  • Zoning fees vary by valuation band; the schedule states that all additional fees must be paid before final approval.
  • The 2026 schedule lists water and sewer new-utility-connection charges, with lower charges for Bass Lake Beach and Gronner Additions.

  new water utility connection fee: 315 USD (Bass Lake Beach and Gronner Additions: $157.50.) · new sewer utility connection fee: 315 USD (Bass Lake Beach and Gronner Additions: $157.50.)

  “NEW UTILITY CONN WATER $315.00 Ammended and approved 12-8-2025 SEWER $315.00 Ammended and approved 12-8-2025”

• Permit processPartial

  Shoreland permit applications inside Underwood city limits.

  • Application must include information sufficient for the city clerk to assess site suitability and sewage-treatment compliance.
  • For a water/sewer service installation, the application is made to the city clerk on city-prescribed forms.

  “Application shall include the necessary information so that the city clerk can determine the site’s suitability for the intended use and that a compliant sewage treatment systems is/or will be provided.”

Still unanswered

We looked and could not find an official answer yet. Silence is not permission; ask Underwood or Otter Tail County directly.

• Owner-builder exemption — Owner-built residential construction inside Underwood city limits.
• Building code adopted — Building construction inside Underwood city limits.
• Inspections — Building work inside Underwood city limits.
• Certificate of occupancy — Occupancy of buildings inside Underwood city limits.
• Minimum dwelling size — Dwellings inside Underwood city limits.

Each answer was extracted from an official source and independently re-checked against that source by a second reviewer. That is an evidence check, not legal advice. Rules change; confirm with the authority before you buy or build.