This study evaluates the validity of compensation scheme for regulation imposed on the Paldang Drinking Water Protection Districts and discusses some policy implications. Particularly, although several programs devised to support the residents of the districts are based on special laws, it is questionable whether such programs conforms to the spirits of constitutions. This study addresses this question. Upon the analysis, it is revealed that no compensation is due for regulations imposed on the areas such as the Drinking Water Protection Districts and the Waterside Districts. But conditional compensation is due for regulation imposed the Waste Discharge Limiting Areas. Compensation is due for regulations imposed on the Special Policy Districts. In addition, the size of compensation, which differ depending on the nature of districts, seems inappropriate because they are estimated based on the assumption that all regulations are subject to compensation.

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