Capacity fees (also called infrastructure levies or similar terms depending on jurisdiction) are charges collected from developers to help pay for infrastructure improvements needed to serve new development. These fees help ensure that water systems, sewers, roads, and other infrastructure have sufficient capacity to handle additional users. The principle is that growth should pay for growth—new development should contribute to the infrastructure it requires rather than existing taxpayers bearing all costs. Fee amounts are typically based on the estimated infrastructure cost per new unit or connection. Fee revenues must be used for the specific infrastructure purposes for which they were collected.