“Proprietary communities offer people a way to get rich by providing public goods. Public goods affect the value of the land on which they are provided. A classic example is schools. Good schools can increase land value by thousands—if not tens of thousands—of dollars. Similarly, police, roads, parks, and sanitation tend to raise land values. Because a proprietor or developer’s income depends on the value of the land he is renting out, he has incentives to provide public goods as part of his total offering. The two closest examples of proprietary cities are Letchworth and Welwyn, small cities founded by Ebenezer Howard on Georgist principles before being nationalized after World War II.”
http://www.fee.org/the_freeman/detail/private-cities-101
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