Ecological restoration is a key component of biological conservation. Nevertheless, unlike protection of existing areas, restoration changes existing land use and can therefore be more controversial. Some restoration projects negatively affect surrounding landowners, creating social constraints to restoration success. Just as negative off-site impacts (i.e., negative externalities) flow from industrial areas to natural areas, restoration projects can generate negative externalities for commercial land uses, such as agriculture. Negative externalities from industry have led to government regulation to prevent human health and environmental impacts. Negative externalities from restoration projects have elicited similar legal constraint on at least one large-scale conservation project, riparian restoration in the Sacramento River Conservation Area. The negative externalities of restoration that are perceived to be the direct result of specific goals, such as endangered species management, are likely to be more contentious than externalities arising from unintended phenomena such as weed invasion. Restoration planners should give equal consideration to off-site characteristics as to on-site characteristics when choosing sites for restoration and designing projects. Efforts to control externalities can lead to off-site ecological benefits.