The growth and remodeling of arteries, as controlled by the local stress state and the sensory input from the endothelial cells of the artery wall, is given a novel theoretical framework incorporating the active behavior of vascular smooth muscle. We show that local sensory input maps uniquely to the ratio between a target arterial wall cross-section area corresponding to homeostatic conditions and the current arterial wall area. A growth law is formulated by taking the production rates of individual constituents of the arterial wall to be functions of this target-to-current wall area ratio. We find that a minimum active stress response of vascular smooth muscle is necessary to achieve stable adaptation of the artery wall to dynamic flow conditions. With a sufficient active stress alteration in response to stretch, stable growth toward a homeostatic state can be observed for finite step changes or ramp changes in the transmural pressure or the flow rate.