Regulatory takings are government regulations of property that so restrict private use that the Takings Clause of the Fifth Amendment to the U.S. Constitution requires government compensation for the restrictions. This chapter presents the ad hoc balancing test for regulatory takings, which is that the government must compensate for regulations that too severely cause economic losses for a property owner, diminish investment-backed expectations, and are in the character of acquisition of private property. This chapter includes the following two cases: Penn Central Transp. Co. v. City of New York and Murr v. Wisconsin.