Land acquisition is the power of the union or a state government in India to take private land for public, and to compensate the original owners and other persons affected due to such acquisition.

Land acquisition as a tool for protecting sensitive areas involves obtaining buy-in from the community's leadership and from the property owner. Implementing land acquisition programs requires political will, community support and funding. For this reason, land acquisition can be one of the more difficult tools to implement.

This often leads to the establishment of a funding mechanism for acquiring the sensitive lands that advance community goals. Some funding tools that have been implemented include direct line-item appropriations, taxes or fees such as stormwater utility fees, tax incentives, and bonds. In other instances, communities may apply for grant funding and/or work in partnership with private or non-profit organizations to offset the full costs of property acquisition.

Until 2013, the Land Acquisition Act of 1894 governed land acquisition in India. The 1894 Act provided compensation to landowners but did not provide any form of compensation to other persons affected by the acquisition. The older law did not clearly define public purpose or fair compensation. After a number of attempts, the UPA government was able to replace the 1894 Act with Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (2013 LARR Act).

The 2013 LARR Act focuses on providing not only compensation to the land owners, but also extend rehabilitation and resettlement benefits to livelihood looser from the land, which shall be in addition to the minimum compensation. The minimum compensation to be paid to the land owners is based on a multiple of market value and other factors laid down in the Act. The Act forbids or regulates land acquisition when such acquisition would include multi-crop irrigated area. The Act changed the norms for acquisition of land for use by private companies or in case of public-private partnerships, including compulsory approval of 80% of the landowners. The Act also introduced changes in the land acquisition process, including a compulsory social-impact study, which need to be conducted before an acquisition is made.