Local government have insight on the capacity of services currently available in some regions, and also which growth strategy they could follow to avoid very expensive investments with very negative externalities (i.e., congestioned freeways whose capacity can't be extended).

Allowing high-density residential construction near public transportation hubs creates more value than allowing urbam sprawl to grow indefinitely. The single most important reason why people are forced to waste their lives in long commutes is allowing residential neighborhoods to spring up in the middle of nowhere in places where their only way in and out of their homes is through a long congestioned road served by no public transportation service.