For the purpose of protecting sources of drinking water by imposing restrictions on the use of area, municipalities can rely on two acts in Norwegian legislation: the Planning and Building Act and the Expropriation Act. The purpose of this article is to shed light on the degree to which a landowner is entitled to compensation for municipal restriction of use of area for the purpose of protecting drinking water, and possible differences in compensation based on these different legal bases. Such differences can exist: When rights are expropriated, the owner will always be entitled to full compensation for expected economic loss, but conversely, if the owner receives restrictions on his rights to dispose his property but still retains ownership of the ground, the main rule favours the other side; the owner is not entitled to compensation for losses caused by these restrictions.