Development charges fund the initial capital costs of expanding municipal infrastructure to service new development, as growth requires new infrastructure to maintain service levels. The principle is that growth should pay for growth so that existing taxpayers are not burdened. However, development charges often have shortfalls due to legislative discounts and limitations. Rates vary across municipalities in Canada, with the most permissive legislation in Ontario and British Columbia. Municipalities must carefully consider development charge by-laws, exemptions, and how charges are calculated. Emerging issues include aligning development charges with planning policies around intensification and downtown revitalization.