A regulatory taking occurs when the government – even though it doesn't physically appropriate or condemn property as it would in a physical "taking" – imposes regulatory restrictions so severe that they wholly diminish the value of property. In other words, if a regulation goes too far in limiting use of property, it may be recognized as a "taking" for which the government must compensate the property owner. The Supreme Court has found that a regulation that permanently deprives a property owner of all economic use of the property would constitute a regulatory taking. However, if the regulation is less severe, courts are to balance a number of factors, including the public benefit and the duration and extent of the restriction, in deciding whether a regulatory taking occurred. (See also "Fifth Amendment," "Taking").

a regulation that is so intrusive that it is found to take private property for a public purpose without providing the land owner with just compensation

There is no physical taking of the landowner's property. Instead a regulation so burdens the property that its value is lost.