In-Lieu Fees allow developers, states and local governments to offset 鈥渦navoidable impacts鈥 to streams or wetlands and fulfill the National Policy of 鈥渘o net loss of wetlands鈥 through compensatory mitigation conducted by public agencies or nonprofits in compliance with Clean Water Act Section 404 Permitting. In other words, developers can 鈥渙ffset鈥 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).