Final answer:
A wooded area located between mills and a housing development functions as a buffer zone, offering ecological benefits and mitigating urban impact on natural habitats.
Step-by-step explanation:
The wooded area with biking and hiking trails situated between old cotton mills and a housing development is likely considered a buffer zone. This type of area is designated to separate different land uses, such as industrial, residential, and recreational areas, providing a transition that can mitigate the impacts of urbanization on natural ecosystems. Buffer zones can help absorb pollution, provide recreational spaces for people, and create habitats for wildlife adjacent to urban areas. They contribute to the overall ecological health of an urban landscape by serving as a protective barrier.