Performance zoning regulates development based on the specific impacts of the development on the site instead of on the specific types of uses. For example, performance zoning for an industrial development might consider vehicle traffic, air pollution, noise, and lot coverage but would not regulate what types of industry could be located in the development. Performance zoning provides municipalities with more control over the impacts of development while giving developers more flexibility in types of permitted uses.

Performance zoning is authorized in Sections 605(2) and (3) of the Pennsylvania Municipal Planning Code, which contains provisions designed to regulate land uses based on various natural features, as well as provisions that encourage design innovation and flexibility. Although Section 605 requires that zoning districts must be uniform for each class of land uses, additional classifications can be made for regulating land uses near various environmental features, and for the purpose of encouraging innovation and flexibility in development.