The purpose of this memo is to inform you that the Division of Water Quality has completed a draft report resulting from a three-year Wetland Program Development Grant from the U.S. Environmental Protection Agency. The grant funded two DWQ staff for three years. The focus of the grant was to assess the success of compensatory mitigation efforts in North Carolina. A representative random sample of stream and wetland mitigation sites was developed from the population of mitigation sites for which a 401 Certification was issued and/or a mitigation plan was submitted between 1996 and 2006. The sample consisted of 98 wetland and 129 stream sites. The results of this study will be used by the Interagency Review Team (IRT) and Division of Water Quality to develop updated guidance for stream and wetland mitigation, with the goal being improved quality of stream and wetland mitigation projects in North Carolina.