The Delhi Sands Flower-loving Fly was at the center of a controversy in Colton, California. As the only fly species protected by the Endangered Species Act, the Delhi Sands Flower-loving Fly’s habitat was protected from development or disruption. This proved difficult as a hospital was in the process of being constructed when the Delhi Sands Fly was declared an endangered species, causing construction to grind to a halt. Through a conservation offset, the hospital was able to continue its construction, harming the fly’s habitat, but paying $150,000 per acre to restore and conserve the Fly’s habitat in another location (Bayon, 2008).
This market-based mechanism allowed for the Fly’s habitat to be conserved while also allowing essential development to continue.