Updated July 2026 — This article has been updated to reflect Michigan’s proposed statewide septic code (Senate Bill 771) and what it means for waterfront homeowners in Benzie, Leelanau, Grand Traverse, and northern Manistee counties.

It is said that you are never more than six miles from a body of water in Michigan. Michigan also has the longest freshwater coastline in the world. We are very fortunate to have such an abundance of water! No wonder so many people dream of owning a waterfront home.

When you envision your perfect home on the water, you probably think of the beautiful views, the sunsets, boating, and swimming, or the calming effect water has on many of us. But with all the idyllic charm comes the reality that building a custom waterfront home can be challenging due to the very nature of waterfront property.

When building a waterfront home, foundations and septic systems are two unique challenges. Waterfront building standards also continue to evolve — including proposed statewide septic legislation now moving through Lansing — and we stay current on the details so our clients don’t have to. Let’s take a closer look at each of these.

Water Tables, Foundations, and Basements

Having a home near water usually means a high water table. However, many things determine your actual water table, including soil type, drainage, and distance from the body of water.

The water table will influence your foundation design, and a full basement might not be an option. State and local building codes also play a role in determining the requirements for your home’s foundation.

During the planning stage, a survey of the property can help determine the elevation of your basement and other critical points in relationship to the water table and the base flood elevation for the surrounding properties. This will help determine whether a full basement is practical or a crawlspace is more appropriate. An Elevation Certificate can be issued by the surveyor and is an essential for obtaining flood insurance.

Water drainage also needs to be considered when planning your new home. Managing water away from the foundation can be facilitated in many ways, including French drains, gutters, landscaping, and vegetation.

Based on your individual situation and house design, we will design and build a foundation that is appropriate for your conditions and will endure the unique natural forces that waterfront properties face. While this may sound daunting, rest assured that Lakeshore Custom Homes has years of experience building custom waterfront homes in unique settings.

Septic Systems for Waterfront Homes

A well-designed and properly functioning septic system safeguards ground water and nearby lakes and streams from contamination. Obviously if you are investing in a waterfront home, you want to be assured that you will have safe drinking water and be able to enjoy your lake to its fullest while protecting your investment.

Factors that affect the design of a home septic system include:

• Household size
• Soil type
• Site slope
• Proximity to bodies of water

That last factor deserves special attention on a waterfront lot. Systems near lakes, rivers, and streams are designed with greater care than their inland counterparts — generous setbacks from the water’s edge, close evaluation of soils and seasonal water table, and thoughtful placement of the drain field all work together to protect the very water you bought the property to enjoy. This is where experience matters. We have designed and sited septic systems on some of the most beautiful — and most demanding — waterfront lots in Benzie, Leelanau, and Grand Traverse counties, and we treat each site as the unique piece of shoreline it is.

Documentation is an equally important part of our process. Every system we build is designed, permitted, and inspected through the county health department, and we maintain complete records — permits, approved designs, and as-built documentation — for your file. Those records may seem like paperwork today, but they answer every question a future buyer, lender, or health department will ever ask about your system. It’s how we’ve always worked, and as you’ll read below, it’s about to matter more than ever.

In most cases, a traditional septic system will be approved by your local health department, however in special circumstances, there are many other alternative design options. We are experienced working with the county health departments and local building inspectors. We will advise you on the design and placement of septic systems and wells.

Michigan’s Proposed Statewide Septic Code: What It Means for Waterfront Homeowners

You may have seen news coverage about Michigan’s proposed statewide septic code. If you own waterfront property — or are planning to build or remodel — here’s a clear, calm look at what’s actually being proposed and what it would mean for you.

The Short Version

Michigan is currently the only state in the nation without a statewide septic code. Instead, standards are set county by county through local health departments, which is why requirements can differ from one side of a county line to the other.

Senate Bill 771 would change that. The bill directs the Michigan Department of Environment, Great Lakes, and Energy (EGLE) to develop a uniform Statewide Sewage Code — consistent, science-based standards for how septic systems are designed, installed, and maintained everywhere in Michigan. Local health departments would continue to administer permits and inspections, just as they do today.

Status as of July 2026: SB 771 passed the Senate Natural Resources and Agriculture Committee in June 2026 and awaits a vote by the full Senate. It would then need to pass the Michigan House and be signed by the Governor before becoming law. You can follow the bill’s progress on the official Michigan Legislature bill page.

For experienced waterfront builders, this legislation is familiar territory. The proposed standards describe the kind of work good builders already do — the bill would simply make that level of care the baseline statewide.

What Would Actually Change

If enacted, the key elements of the proposed code would include:

• Uniform baseline standards for new septic systems across all 83 counties, replacing today’s patchwork of local rules
• Routine evaluations on a 10-year cycle, phased in over time and prioritized by risk — starting with the oldest systems, systems close to surface water, and systems that were never permitted
• A statewide database of septic systems and their evaluation records, so a system’s history travels with the property
• Registered, trained evaluators, so inspections are performed to a consistent professional standard

Notably, the bill explicitly accommodates modern alternative and advanced treatment technologies. For challenging waterfront sites, that means the full range of design options remains open — the legislation is built for flexibility, not one-size-fits-all.

Remodeling or Buying a Waterfront Property with an Existing Septic System?

This is the question we hear most often right now, and it deserves its own answer.

Many owners of older lakefront homes in our area are wondering whether the pending legislation means they should put off a remodel until the rules are settled. Our honest answer: no — and in most cases, moving forward thoughtfully now puts you in a stronger position, not a riskier one.

Here’s why. The systems the proposed code prioritizes for early evaluation are older systems near the water — and that’s true whether you remodel or not. Waiting doesn’t change your system’s age or its distance from the shoreline. What a remodel does offer is the natural moment to assess your existing system with professional eyes. If it’s sound, you’ll have documentation saying so. If it’s nearing the end of its service life, upgrading during your remodel — when equipment, access, and permitting are already part of the project — is far more efficient than addressing it later as a standalone repair.

When you remodel with Lakeshore, septic assessment is part of the planning conversation from day one. We evaluate the existing system, coordinate with the county health department, design an upgrade or replacement where one is warranted, and deliver complete permit and as-built documentation when the work is done. The result is a file that answers every future question before it’s asked — under today’s rules or any future statewide code.

There’s a resale benefit, too. Some counties in our region, including Grand Traverse and Manistee, already require septic evaluations when a property changes hands. An updated, fully documented system turns that step into a formality — and it’s an asset buyers and their lenders genuinely value, no matter what happens in Lansing.

Weighing whether to remodel your current waterfront home or start fresh? Our guide to remodeling versus building new walks through that decision — and wherever you land, we’ll assess your existing septic system as part of the planning conversation.

Common Questions About the Proposed Septic Code

Will a new home’s septic system meet the proposed state standards?

Yes. A system designed today, permitted through your county health department, and professionally installed will meet or exceed the baseline standards the legislation proposes. The proposed code is aimed at bringing consistency to how systems are maintained over their lifetime — particularly older systems that were never documented — not at changing what a well-built new system looks like.

Is there really a $3,000 fee for a septic permit?

No. This is probably the most common misunderstanding about the bill. The $3,000 fee in the legislation is a registration fee paid by manufacturers of proprietary septic products who want their products approved for use in Michigan — it covers the state’s cost of reviewing those products. Homeowner permitting would continue through your county health department, just as it works today.

Will a new or updated system face inspections?

Eventually, yes — the proposed code calls for routine evaluations of all systems on roughly a 10-year cycle, phased in over many years. But the priority queue starts with the systems most likely to have problems: those decades old, close to surface water, or never permitted. A newly built and documented system is many years away from its first routine evaluation, and when that day comes, the evaluation of a well-designed, well-maintained system is a straightforward records-and-condition check — comparable to any home system serviced on a schedule. It’s also worth knowing that the bill allows health departments to exempt systems from repeat evaluations in certain circumstances.

What does this mean when I sell my home?

In parts of our region, septic evaluations at the time of sale are already a fact of life — Grand Traverse and Manistee counties have such requirements today. A modern, documented system makes that step a formality rather than a negotiation. If the statewide code passes, its records database would make a documented system even more of an asset: your system’s clean history would be on file for any future buyer to see.

When would any of this take effect?

Not overnight. The bill has not yet become law. If it does, EGLE would have three years to develop the statewide code, and local health departments would then phase in implementation over several more years, with routine evaluations rolling out gradually by priority. The practical takeaway: building or remodeling now, with proper permits and documentation, is the durable position under any outcome.

The Bottom Line

Whatever happens in Lansing, the standard doesn’t change at Lakeshore Custom Homes: well-designed, properly permitted, fully documented septic systems that protect the water you bought your property to enjoy. The proposed statewide code would simply ask all of Michigan to build and maintain systems the way good waterfront builders always have. If you have questions about your property — new build or remodel — we’re glad to talk them through.

Please view our portfolio to see examples of some of the finest homes in Northern Michigan.

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