Eminent domain is the power of government, or a quasi-governmental entity, such as a utility company, to take private property for public purpose.

Condemnation is the process through which the power of eminent domain is exercised. The condemning authority files a lawsuit against the property owner to take private property necessary for a public purpose. The property owner has the right to defend, which includes, in some cases, contesting the taking. The property owner also has the right to demand that they be paid full compensation for the taking, which right is guaranteed by the constitution.

Inverse condemnation occurs when a government appropriates a property for public use without the formal exercise of its power of eminent domain. In other words, inverse condemnation is the taking of, by a government entity, without the payment of full just compensation.