The counties of the US Capital Region represent unique case studies of urban areas that face tremendous development pressures resulting from their proximity to Washington, DC. They cross two states: Maryland with a statewide smart growth programme and Virginia without such a programme. This unique location raises two questions: do statewide smart growth programmes lead counties to adopt smart growth policies?; and what are the local factors contributing to county decisions to apply these policies? Case study analysis was applied to examine these questions in the Capital Region based on three sources of evidence: state and county regulations and plans; interviews with county planners; and secondary data. The analysis indicates that state mandates shape county land use planning. While statewide incentive programmes/policies help Maryland’s counties to preserve their farmlands, they seem insufficient to change sprawling development patterns. County applications of smart growth policies are mainly driven by local needs and priorities.