The City of Livermore (Livermore) (defendant) enacted an ordinance prohibiting issuance of new residential building permits until local educational, sewage-disposal, and water-supply facilities complied with specified standards. The stated purpose of the ordinance was to further the health, safety, and welfare of the citizens of Livermore and to contribute to the solution of air pollution. The Associated Home Builders of the Greater Eastbay, Inc. (Eastbay) (plaintiff) filed suit to enjoin the enforcement of the ordinance. The superior court issued a permanent injunction, and Livermore appealed. Eastbay argued the superior court’s injunction should be affirmed, because the ordinance was an unconstitutional exercise of the police power. Eastbay argued that nonresidents had a constitutional right to migrate to Livermore, and there was no compelling state interest justifying the ordinance.