Consider a private land developer that comes to the High Desert to make some money. A parcel of land suitable for the developers plan is found. Zoning maps are checked down at the city planners office, and the parcel under consideration is zoned for the developers intend use. The land is purchased and development plans are submitted to the city planner.
It just so happens, the land that was purchased has been receiving a continuous flow of urban runoff from a nearby housing subdivision for over 20 years. The excess water created small 5 acre stream fed oasis for local flora and fauna. The planned development of the property would require the drying and covering of the oasis.
When an environmental assessment of the property was conducted, it was determined that the developer would have to either build around the oasis, effectively including it in the development, or make up for the impacts of its destruction. Put another way, the developer would have to mitigate or offset the impact of the planned development by participating in a project that would enhance the value of 5 acres of an existing and nearby wetland to support indigenous species or add 5 acres to an existing and fully functional wetlands conservation area. By participating in one of the preceding to options, the developer effectively has mitigated the negative impact of the development on the artificial oasis. The conservation area that was enhanced and or acreage was added to is in effect a mitigation bank.
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