Cash-in-lieu (of land) is a payment developers make to municipalities instead of dedicating actual land for parks, schools, or other public purposes when subdivision occurs. Planning legislation typically requires subdivisions to dedicate a percentage of land (often 10%) as municipal reserve for public use. In some situations—where the subdivision is too small for useful parkland or where the municipality prefers money to land in a particular location—cash equivalent to the land value is accepted instead. Cash-in-lieu funds are restricted to the same purposes as land dedication (typically parks and recreation). This flexibility allows municipalities to consolidate resources for larger, more usable public spaces.