Land Regulation and Property Rights

Abstract

Land-use regulation traditionally has been a necessary exercise of government power to protect the public welfare. Though the regulation may reduce or impede the economic use of the property, a government's regulatory body has not been required to reimburse the property owner except in instances of a physical taking or occupation of private property for a public purpose. Due to a U.S. Supreme Court decision, however, state and local governments may now be held financially responsible for environmental regulations that a court finds unduly restrict privateproperty rights.