The primary Federal regulatory program governing wetlands is authorized by Section 404 of the Clean Water Act. Similarly structured state and local permit programs also exist. In most instances, wetlands permitting is, by formal regulation, expected to follow a mitigation 'sequence' where the applicant for a permit must first show that the proposed activity has been designed to avoid wetlands to the maximum extent. If avoidance is not possible, then the minimization of filling must be achieved. Finally, if a permit is granted, compensation by restoration of degraded wetlands or by creation of wetlands from uplands is required on-site (as close as possible to the permitted activity). Also, the same kind of wetland is to be provided. At times, permittees have been allowed to compensate by developing a single off-site compensation project when on-site possibilities for wetlands construction or restoration are limited. Some permit applicants, who expect to initiate several future projects requiring mitigation, have been allowed to meet these requirements by been allowed to meet these requirements by developing one large off-site mitigation project. This is the general definition of a 'single-user' wetland mitigation bank (or a 'joint-project' bank, if the bank is developed and used jointly by more than one sponsor). However, most permit applicants have only one or a few prospective projects of too small a size to warrant developing a single user bank. In such cases, permit applicants could potentially satisfy their mitigation requirements by purchasing mitigation credits (some measure of wetland function and area) from a commercial credit supply venture (e.g., a commercial mitigation bank).