>>> IT IS A HIDDEN GEM, THE PICTURESQUE SHORES OF SAUSALITO, GALILEE HARBOR IS A QUAINT FLOATING HARBOR . THE MARITIME WORKERS HAVE BEEN PROTECTED OF THEIR LITTLE SLICE OF HEAVEN. LOOK AT THAT. BUT, IT IS NOW FACING REAL-WORLD CHALLENGES TO ITS CHERISHED WAY OF LIFE. >> Reporter: IT'S DAYS LIKE THESE WHEN HEATHER FEELS SHE IS LIVING LIFE IN HARMONY. >> THE LIGHT FILTERS AND IN THE AFTERNOON AND IT'S REALLY LOVELY. >> Reporter: FOR MORE THAN 40 YEARS, SHE HAS LIVED ON THE DELTA QUEEN, A SMALL FISHING BOAT THAT ONCE SERVED MEALS TO MARITIME WORKERS. >> I LOVE BEING HERE. THIS IS MY MAGIC WORLD. >> THE MAGIC WORLD IS A PLACE CALLED GALILEE HARBOR, A TINY FLOATING COMMUNITY IN SAUSALITO. >> YOU HAVE THE MARSH AND THE BIRDS, WHAT CAN I SAY, I'M JUST REALLY LUCKY. >> Reporter: OUTSIDE THE WINDOW IS A PLACE THAT TIME HAS SEEMED TO FORGOTTEN, THE NEIGHBORS STILL WAVED AT EACH OTHER AS THEY PASS BY AND THE DOORS ARE NEVER LOCKED. >> IT IS SO UNIQUE AND SO SPECIAL, AND WE WORK VERY, VERY HARD TO MAKE THIS HAPPEN HERE. >> Reporter: IF YOU HAVE NEVER HEARD OF GALILEE, THAT IS BY DESIGN, THIS QUAINT HARBOR OVERLOOKING RICHARDSON BAY CAN BE HARD TO FIND , AND THAT IS PART OF ITS CHARM. IT'S BELIEVED TO BE THE ONLY OWNED AND OPERATED FLOATING CORROBORATIVE IN THE COUNTRY WHERE PEOPLE LIVE ON THEIR BOATS FULL-TIME. RESIDENTS ARE EITHER ARTISTS OR MARITIME WORKERS AND MUST BE VOTED IN. IT ALL STARTED IN 1980 , WHEN THE CITY OF SAUSALITO BROUGHT IN BULLDOZERS TO CLEAR THE HARBOR FROM HIPPIES AND MARITIME WORKERS WHO SETTLED HERE. THE RESIDENTS FOUGHT BACK AND AFTER A HUGE LEGAL BATTLE, WERE ALLOWED TO STAY , PROVIDED THEY MAINTAIN THE PLACE AND REMAIN A LOW INCOME COMMUNITY. A PAINTER, HEATHER, SPENDS MOST OF HER TIME IN A SMALL STUDIO A BLOCK FROM THE HARBOR. >> I DO A LOT OF THINKING. I NEED THAT PLACE OF CALMNESS AND IT GIVES ME THAT. >> Reporter: BUT RECENTLY, THAT HAS BEEN SHAKEN, AS HER LITTLE SLICE OF PARADISE IS FACING REAL-WORLD CHALLENGES. INFLATION AND COST OF LIVING HAVE MADE IT HARDER TO MAINTAIN THE HARBOR. GALILEE IS ALSO SURROUNDED BY PRIME REAL ESTATE, MAKING IT ATTRACTIVE TO DEVELOPERS. THESE DAYS, HEATHER AND HER NEIGHBORS ARE FIGHTING A PROPOSED 50,000 SQUARE-FOOT CONSTRUCTION AT THE MARINA NEXT DOOR. GALILEE RESIDENTS WORRY IT WILL NOT JUST BLOCK THEIR VIEWS BUT ALSO HARM THE SENSITIVE MARSH AROUND THEM. BRAD CORNELIUS IS GALILEE HARBOR'S MANAGER, HE SAID THAT WHILE THE NEIGHBORS ARE ENTITLED TO EXPAND , THEY HOPE THEY DO IT IN A WAY THAT IS GOOD FOR EVERYONE. >> THEY WANT TO BUILD ON LAND THAT IS CURRENTLY OUTDOOR STORAGE, AND THEY WANT TO MAKE IT THREE STORIES OF INDOOR STORAGE. WE WOULD LIKE THEM TO SCALE THAT BACK. >> Reporter: THEY HAVE MET WITH THE RESIDENTS AND ARE CONSIDERING APPROPRIATE CHANGES. THE CITY OF SAUSALITO SAID THEY ARE COMMITTED TO MAKING SURE ANY POTENTIAL DEAL IS IN THE PUBLIC'S INTEREST. AS FOR HEATHER, SHE SAYS WHATEVER THE OUTCOME, THE RESIDENTS HERE WILL CONTINUE TO DO WHAT THEY'VE ALWAYS DONE, PRESERVE THE HARBOR AND ITS WILDLIFE. >> WE HAVE THIS TO OFFER, IT'S NOT JUST FOR ME, IT'S FOR EVERYBODY. >> Reporter: BATTLING THE WORLD'S CHANGING TIDES , WHILE TRYING TO KEEP HER IDYLLIC SANCTUARY AFLOAT. >>
