The so-called zone expropriation is that based on the needs to develop and construct a new city, to renovate the old city, to update the rural communities, or to facilitate other development purposes, the government can expropriate all the land within a certain area for an overall planning and re-development. After the re-development, the land needed for public facilities shalll be directly controlled and used by the government. Meanwhile, the rest of construction land can be partly taken back by the original land owners as land-based offset payment, partly used by the government agencies in need of land, and the balance sold or rent by public tender or by superficies. The proceeds from land disposal shall be used to offset the total development costs. Thus, zone expropriation is a self-liquidating system for development projects.
The most important legal basis for zone expropriation includes the Land Expropriation Act, Enforcement Rules of the Land Expropriation Act, and The Zone Expropriation Regulations, etc. In addition, a number of acts or laws provide for the application of zone expropriation, including Act for Promotion of Private Participation in Infrastructure Projects, Ordinance for Promotion of Participation in Transportation Construction, Urban Planning Law, New Town Development Act, Act for the Development of Tourism, The Mass Transit Act, Urban Renewal Act, and other related laws.