Development in the wildland-urban interface is increasing exposure to wildfire risks in the western United States. Yet, among the components of risk—hazard, vulnerability, and exposure—mitigating exposure has arguably been most difficult. In this report, we describe the set of interconnected state and local policies that affect development and risk exposure, including local land use planning and zoning, state policies governing insurance, building codes, and infrastructure spending, as well as the role of states as intermediaries between the federal government and localities. We discuss various plans that local governments develop, including Comprehensive Plans, Hazard Mitigation and Community Wildfire Protection Plans, and Comprehensive Economic Development Strategies, and we argue that in most communities, these plans do not adequately address the exposure component of the wildfire risk problem or provide potential resilience solutions that address exposure. We suggest a number of policy directions, including changes to planning requirements, creative zoning options like wildfire resilience overlays, and incentives that states and the federal government may be able to use to direct growth toward lower risk areas.