A net change equation is derived for assessing no net loss of producti
vity of fish habitat (NNL). NNL is the guiding principle of the Canadi
an policy for the management of fish habitat. The equation provides a
middle ground between the extremes of no conservation and no developme
nt. Projects affecting fish habitat are accountable for the productive
capacity in loss areas and the difference between current and future
productivities in modified areas. The equation implies quantitative co
nservation targets overall and loss-offsetting equivalencies in modifi
ed habitat areas. Generalization of the net change equation to heterog
eneous habitats is illustrated with a development in a coastal wetland
on the Great Lakes. The net change framework has implications for lin
kages between suitable habitat supply and fish population dynamics. Ar
ea fish habitat management plans envisioned in the policy and site-lev
el net change assessments are connected. Quantitative ways are propose
d for simultaneous assessment of NNL and ''harmful alteration, disrupt
ion, or destruction'' of fish habitat, as required in the Canadian Fis
heries Act. Defensible methods for applying the net change equation ar
e superior to earlier nonquantitative approaches. Lf the available sci
ence is insufficient, the precautionary principle is recommended. Futu
re development steps for the quantitative net change framework are sug
gested.