(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.