Tempe-based Vistoso Partners, led by longtime developer ConleyWolfswinkel, recently paid $10 million for 650 acres just southeastof Flagstaff, which lies 130 miles north of Phoenix. Thedevelopment, called Pine Canyon Club, is zoned for houses,townhomes and apartments. An 18-hole championship golf course isbeing designed by Jay Morrish.

Pine Canyon falls within Flagstaff's self-imposed growthboundary, which the city set to limit growth so its infrastructurecould keep up. Flagstaff has become a summer weekend retreat andsecond-home haven for many Phoenix residents, offering coolertemperatures just two hours drive from the Valley.

When it's built out several years from now, the master-plannedcommunity could increase by more than 40% the population of thenorthern Arizona town, which currently has only 50,000 residents.More than 20,000 people could live in the project's 11,000 newhomes.