"Sprawl" is one of the ugliest words in the American political lexicon. Virtually no one wants America's rural landscapes, farmland, and natural areas to be lost to bland, placeless malls, freeways, and subdivisions. Yet few of America's fast-growing rural areas have effective rules to limit or contain sprawl.

Oregon is one of the nation's most celebrated exceptions. In the early 1970s Oregon established the nation's first and only comprehensive statewide system of land-use planning and largely succeeded in confining residential and commercial growth to urban areas while preserving the...