(a) The growth tiers adopted by a local jurisdiction shall meet the following criteria:
(1) Tier I areas are areas that are:
(i) served by public sewerage systems and mapped locally designated growth areas; or
(ii) a municipal corporation that is a priority funding area that is served by public sewerage systems;
(2) Tier II areas are areas that are:
(i) 1. planned to be served by public sewerage systems and in the municipal growth element; or
2. mapped locally designated growth areas; and
(ii) needed to satisfy demand for development at densities consistent with the long-term development policy after consideration of the capacity of land areas available for development, including in-fill and redevelopment, within the local jurisdiction;
(3) Tier III areas are areas that:
(i) are not planned for sewerage service and not dominated by agricultural or forest land;
(ii) are not planned or zoned by a local jurisdiction for land, agricultural, or resource protection, preservation, or conservation; and
(iii) are one of the following:
1. municipal corporations not served by a public sewerage system;
2. rural villages as described in § 5-7B-03(f) of the State Finance and Procurement Article;
3. mapped locally designated growth areas; or
4. areas planned and zoned for large lot and rural development; and
(4) Tier IV areas are areas that are not planned for sewerage service and are:
(i) areas planned or zoned by a local jurisdiction for land, agricultural, or resource protection, preservation, or conservation;
(ii) areas dominated by agricultural lands, forest lands, or other natural areas; or
(iii) rural legacy areas, priority preservation areas, or areas subject to covenants, restrictions, conditions, or conservation easements for the benefit of, or held by a State agency, as defined in § 9-206 of the Environment Article, or a local jurisdiction for the purpose of conserving natural resources or agricultural land.
(b) A local jurisdiction shall strive to avoid creating a Tier III area that is bounded on all sides by land in a Tier IV area.