On the waterfront: real estate values rise, but families keep prices in line. (Inside: Baltimore County)

EASTERN BALTIMORE COUNTY -- As you drive east over the Key Bridge toward Dundalk, heavy industry dominates the view. The horizon is full of smokestacks, warehouses and storage tanks.

A sign reads: "Caution -- Area Subject to Dense Smoke."

You may find yourself pondering Baltimore's shipbuilding history and the manufacturing sector of its economy. Prime residential real estate and strong, family-oriented communities are probably the last thing on your mind.

But you might notice something else as you cross the bridge, something that has everything to do with property values and the building of communities.

"Water is magic," developer James Rouse said more than once, and the magic of eastern Baltimore County's water has produced an unusual series of neighborhoods lining the peninsulas stretching into the Chesapeake Bay.

Fred Meyer grew up a block from this water, where swimming, fishing, crabbing and boating became second nature.

All his life …