In-Lieu Fees allow developers, states and local governments to offset “unavoidable impacts” to streams or wetlands and fulfill the National Policy of “no net loss of wetlands” through compensatory mitigation conducted by public agencies or nonprofits in compliance with Clean Water Act Section 404 Permitting. In other words, developers can “offset” stream and/or wetland impacts by purchasing credits that are generated by ILF programs which create, restore, and protect streams and wetlands within the affected Ecological Drainage Unit (watershed).