Abstract: A system and method for implementing a policy driven environment for the development of electronic content is provided. Such a policy driven system and method controlling the introduction of digital content into electronic content under development by monitoring the development environment for file alteration events and analyzing the file alteration event and associated metadata of the electronic content and externally introduced digital content with policy engines that address aspects such as copyright, licensing, source, file type, file length etc according to the policies established by the development organization. The system and method helping to protect the development organization by detecting policy breaches, determining the appropriate course of action, and implementing corrective actions.