"More than half of all development in the last 10 years as occurred on land using septic systems," Whitman said in her message. "That's bad for water quality."

Until now, there has been a loophole in state law that has permitted development of as many as 49 housing units without environmental review. That has long been a target of environmentalists in the state. The change is aimed at limiting suburban sprawl by making it tougher to get projects done.

Whitman is in her last term in office, although she won't finish out her full term. Once she's approval as Federal EPA head by Congress, which is expected to happen shortly, she will cede the governor's office to State Senate president Donald De Francesco.

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