Lot grading is the shaping and sloping of land on a property to control how water drains during rain or snowmelt. Proper lot grading directs water away from buildings toward streets, storm drains, or designated drainage areas, preventing basement flooding and foundation damage. Municipalities require lot grading plans for new construction and enforce grading standards to protect both individual properties and neighbourhood drainage systems. Improper grading can cause water to pool, erode soil, or drain onto neighbouring properties, creating disputes and damage. Building inspectors verify lot grading meets approved plans before issuing final occupancy permits for new homes.