Historical wetlands in the USA and throughout the world have experienced si
gnificant impact. Today, wetlands in the USA are protected by law and resto
ration efforts have also been undertaken. This paper critically presents th
e current USA legal framework in relation to wetlands and development, comp
aratively presents the concepts of mitigation and mitigation banking, analy
zes the current practices in terms of advantages and disadvantages when it
comes to wetland impacts and losses, and answers the question if on-site mi
tigation and mitigation banking are or could be forms of sustainable develo
pment.