In principle, I hate this. Cities should be able to plan their own growth. In practice, coming from CA, I am 100% onboard. It's a mess of red tape and bullshit lawsuits.
They are able to plan their own growth, but they aren't able to refuse to grow. Or at least, not through zoning; being located where potable water or sewer/septic are at capacity is probably still valid to restrict new building.