Special assessments, exactions, and development fees are quickly becoming popular among cities with development pressure. This article discusses the limitations the courts place on the use of such financing for infrastructure, thus giving guidance to local officials. Many of the limitations on private financing involve drawing fine legal distinctions in wide "gray" areas, or making decisions when the courts future direction is uncertain. If local officials are to make informed decisions in such situations, they must understand some of the legal reasoning that underlies private financing.