Whether you dream of a tucked-away mountain cabin, a ski-home retreat, a hobby farm, or a town property, buying land in Teton Valley is an exciting opportunity.  It can also be complex. Regulations, utilities, water rights, access, and long-term costs vary widely depending on location and zoning. This guide is designed to help prospective buyers understand the key issues to consider when purchasing a lot either within the city limits of Victor, Driggs, or Tetonia, or acreage outside of city limits in Teton County, Idaho, and surrounding areas.

Purpose: What do you want to do with the lot?

• Is this going to be your primary residence, vacation or second home, or a rental? Do you want the option of renting the home on a short-term basis? Short-term rentals are allowed within the cities of Victor, Driggs, and Tetonia, but the CC&Rs (Covenants, Conditions, and Restrictions) of a subdivision might not allow for short-term rentals.
  
  

• Do you plan to build right away, or hold the lot for a future build? What are the carrying costs if you don’t build right away? A homeowner’s association (HOA) normally does not require anyone to build within a certain timeframe, but once you start building, most HOAs require the project to be completed within a year, if possible.
  
  

• Carrying costs to keep in mind are annual taxes and HOA fees. HOA fees vary significantly, depending on the subdivision. Some HOA fees cover the cost of snow plowing and road maintenance, while other subdivisions might have the city or county cover these expenses. Always research the most up-to-date costs for taxes and HOA fees on each lot you are considering. Also, be sure to double-check what the HOA fee covers.
  
  

• Do you want to connect to city water and sewer? Are you open to drilling a well and installing a septic system (needed outside of the city limits)? Outlined later are the costs of both options.
  
  

• Do you want space for a garden, horses, or a hobby farm? Do you need water rights for farming or animals? If so, be sure to consult the HOA rules for fencing, outbuildings, animal types and quantities.
  
  

• Are you concerned about resale value, the ability to split the lot, flexibility in use, or the ability to build a guest house?
  
  

• Is having a Teton view a must?
  
  

Key Considerations for Lots within the City-Limits of Driggs, Victor, or Tetonia, Idaho:

Below is a list of common questions and answers about purchasing a lot within the city limits of Victor, Driggs, or Tetonia. In-town lots are in high demand because many people want access to city water and sewer, power, fiber for internet service, and in-town conveniences. They like the proximity to shops, services, and schools.

• What is the zoning? Even within city limits, there are many types of zoning. For any lot, confirm the zoning designation as this affects what you can build (single-family, duplex, multifamily, accessory buildings), whether short-term rentals or home businesses are permitted, the building height and footprint, setback requirements, and more considerations.
  
  

• Is it in a subdivision? If so, you need to review the CC&Rs.
  
  

• What are the permit fees? You’ll need building permits for any construction, remodel, or significant alteration. These can be a significant amount, so be sure to consult city staff if necessary.
  
  

• What does the city code allow me to build? In city limits, you need to follow the city’s building codes to obtain a certificate of occupancy.  Be sure you have the facts before you have your heart set on the plans.
  
  

• Before you purchase a vacant lot, confirm it is “buildable” under zoning and code. Some lots may exist but may not meet the minimum size needed to accommodate the required setbacks. Confirm that there is access to the lot and that access to power is a reasonable distance.
  
  

• Where are the closest hookups? One major advantage of in-town lots is access to city water and sewer, rather than the need to drill a well and install a septic system. Be sure you know where the closest access is located as this may affect your plans.
  
  

• As of late 2025 the current known fees for connecting to city utilities within the city limits are below. There are different rates if you are outside of the city limits:

  City / Service	Connection Fee (In-city)
  Driggs — water & sewer (1″ line connection + meter)	~ $11,690 total (for a 1″ connection + meter + associated fees)
  Victor — water hookup	~ $3,420
  Victor — sewer hookup	~ $2,125 (meter equipment ~ $502.17)
  Tetonia — water hookup	~ $5,400
  Tetonia – sewer hookup	~ $2,000 (meter equipment ~ $1,300)

  (Sources: city offices of Tetonia, Driggs, and Victor)

  • Note: For Driggs, the high 1″-line fee reflects a larger-diameter connection and full meter assembly, likely intended for higher-demand usage than a standard residential stub.

   

  Key Considerations for Lots Outside City Limits in Teton County, ID 

  Below is a list of key details to consider when purchasing a lot outside the city limits in Teton County, ID.
  
  

  Zoning, Building Rights

  • What are the zone regulations and requirements? Outside city limits, you fall under Teton County’s zoning, building, and land-use code.
    
    
  • If you are in a subdivision, you will need to follow the building requirements that will be included in the CC&Rs for that subdivision. Most CC&Rs will include a minimum square footage building requirement for the main house and a maximum square footage size for a guest house. Some subdivisions will not allow a guest house. There will also be building design guidelines in the CC&Rs. You’ll want to read those and decide if you are willing to follow those design guidelines.
    
    
  • Teton County, Idaho, allows for a lot to have a main house, a guest house or ADU (accessory dwelling unit), a barn, and outbuildings. The size of your lot determines the size of the guest house you can build. See the chart below:
    •  The maximum size of a guest house shall not exceed:

      • 1500 sq feet on parcels 7.5 acres or larger 

      • 1200 sq feet on parcels over 2.5 acres up to 7.5 acres

      • 900 sq feet on parcels 2.5 acres or smaller

  (Source: Teton County Land Development Code)

  • Some older parcels (especially “deed splits,” “ag splits,” or legacy parcels) may lack legal building rights. It’s critical to verify with Teton County that the lot you are interested in can be built on.

   

  Water Rights / Water Supply – A Crucial Factor in Idaho

  • If the lot is outside of city limits and does not have access to city water, you will need to drill a well. The Idaho Department of Water Resources (IDWR) can confirm that you can drill a well and also tell you if there are any water rights relevant to the property. If there are water rights, you will want to have them conveyed with the sale of the property. You’ll need to pay a water rights transfer fee to IDWR.
    
    
  • If the lot lacks municipal water access and you plan to drill a well, check the local groundwater conditions, depth to water table, well logs nearby, and reliability of supply.
    
    
  • If the lot has water rights and you intend to irrigate, water livestock, or water your landscaping, the lot’s water supply may be the single biggest determinant of long-term viability and enjoyment.
    
    
  • The state of Idaho has just made some changes to water rights for newly created subdivisions. You can read more about this in the blog on our site about water rights.
    
    
  • The minimum cost to drill a well is around $6,000 to $16,000 for a 200-foot well, depending on the depth, soil and rock, the casing, the pump, and water supply conditions. (Source: Denning Well Drilling)
    
    

  Installing a Septic System

  • With no sewer hookup, you’ll need to install a septic system. Depending on the location of the lot, you might want to perform a percolation (perc) test to ensure the soil drains properly. Some soils (clay, bedrock, high groundwater) may fail a perc test, rendering the lot unbuildable without expensive soil remediation or an engineered septic system, which is more expensive. Eastern Idaho Public Health is the department in Teton County, ID, that will approve the location of the septic system.
    
    

  • Topography matters too. Lots on steep slopes or on hillsides may pose challenges with the driveway construction, drainage control, erosion, foundation design, driveway/road access, and snow management, which lead to higher building costs.
    
    

  • Vegetation, wetlands, seasonal creeks, and drainage can influence where you can build, whether you need additional permits, or whether there are restrictions on tree removal or runoff. Teton County might require a wildlife impact study to be completed to help determine the best building site.
    
    

  • Teton County’s building codes have setback requirements for the distance the home and the septic system can be from a well, a water line, a property line, surface water, irrigation canals, creeks, streams, and rivers. You’ll want to confirm that there is a viable building site on the lot, with these setback requirements in mind.
    
    

  • The average cost for a septic system is $7,000 to $12,500 for a basic septic system, depending on the soil.
    
    

   Legal Access & Road Conditions

  • Ensure the lot has recorded legal access. Many rural parcels depend on easements or shared roads. If the access road isn’t properly documented with a recorded easement or isn’t maintained, you may face legal or practical problems.
    
    

  • Determine who maintains the road (county, homeowners, neighbors). In remote areas, snow-plowing, drainage, and maintenance can become a shared burden or expensive if done privately.
    
    

  • In Idaho’s mountain climate, consider winter access, road grade, snow load, and the practicality of emergency access in winter.
    
    

  An experienced local Realtor can help you navigate the considerations outlined above. Use the checklist below to guide your research and evaluate potential lots.

  1. Build a “wish list”

     • Include what you want in terms of size, water supply, use, privacy, view, etc.

  2. Short-list 5–10 lots

     • Ideally, a mix: some in-town, some rural, to compare trade-offs (cost, convenience, buildability, flexibility).

  3. For each lot, find answers to the following list of items

     • Zoning

     • Water rights

     • Access

     • Soils

     • Utilities

     • Fees

  4. Calculate “all-in cost.”

     • Land + hookup/septic/well + infrastructure/utility installation + permits + impact fees. Compare this to the cost of comparable existing homes (i.e., is it worth building vs buying?).

  5. Engage local experts early

     • Including a real estate agent, land-use attorney (if needed), surveyor, well/septic contractor, and city/county staff. Their local knowledge and access to records can save you headaches.

  6. Document Everything!

     • Maps/plats, easements, water-rights, deeds, city correspondence, utility fee schedules, impact fees, zoning determinations. Keep a file for each lot.

  7. Make a decision with eyes wide open

     • Understand trade-offs (cost vs convenience vs flexibility vs risk).

Both Delwyn and I would love to help you find the perfect lot! We are local experts with years of experience and can help you find the answers you need to make an informed decision on which lot to purchase.

Contact us today to start your land purchase journey.