This week, the Environmental Protection Agency (EPA) announced a new Waters of the United States (WOTUS) rule in response to the Sackett Supreme Court ruling that curtailed which waters (continuous surface connection to a protected body of water) are subject to federal Clean Water Act protections. The new rule removes the significant nexus test from consideration when identifying tributaries and other waters as federally protected. NAHB released a statement on the ruling calling it a blow to housing affordability from the rule’s uncertainty by failing to define a “relatively permanent” waterbody. It is likely this rule could also be challenged in court.