The city of Ouray is expected to amend its rules on issuing sewer taps in a way that would potentially allow multi-family housing and commercial development to come online.

During a Monday morning work session, city councilors directed staff to amend a nearly two-year-old ordinance that severely restricted the number and types of new connections that could be made to the city’s overtaxed wastewater treatment system. The council is expected to formally adopt the changes next month.

City councilor...