Suburban, exurban, and rural development in the United States consumes nearly 1 million hectares of land per year and is a leading threat to biodiversity. In response to this threat, conservation development has been advanced as a way to combine land development and land conservation while providing functional protection for natural resources. Yet, although conservation development techniques have been in use for decades, there have been few critical evaluations of their conservation effectiveness. We addressed this deficiency by assessing the conservation outcomes of one type of conservation development project: conservation and limited development projects (CLDPs). Conducted by land trusts, landowners, and developers, CLDPs use revenue from limited development to finance the protection of land and natural resources. We compared a sample of 10 CLDPs from the eastern United States with their respective baseline scenarios (conventional development) and with a sample of conservation subdivisions--a different conservation development technique characterized by higher-density development. To measure conservation success, we created an evaluation method containing eight indicators that quantify project impacts to terrestrial and aquatic ecosystems at the site and in the surrounding landscape. The CLDPs protected and managed threatened natural resources including rare species and ecological communities. In terms of conservation benefits, the CLDPs significantly outperformed their respective baseline scenarios and the conservation subdivisions. These results imply that CLDPs can offer a low-impact alternative to conventional development and a low-cost method for protecting land when conventional conservation techniques are too expensive. In addition, our evaluation method demonstrates how planners and developers can incorporate appropriate ecological considerations when designing, reviewing, and evaluating conservation development projects.