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).