A new Bill allows borough councils to make developers pay for any damage they cause to roads or footpaths.
The legislation, which finally cleared Parliament after six years, also gives greater powers to enforce road alterations.
Both councils and TfL will now be able to charge the organisers of large-scale public events, such as football matches or concerts, for the cost of redirecting traffic - and any street cleaning above and beyond the norm if people attending the event cause a mess.
The London Local Authorities and Transport for London (No.2) Bill will also have an impact on cyclists, whose numbers in the capital have grown amid campaigns backed by mayor Boris Johnson.
While more people have been encouraged to cycle to work, which is seen as a cheaper and sometimes quicker way to head to the office, the new legislation means cyclists will have to take more care on their journey as it introduces harsher penalties for those who endanger pedestrians by riding on footpaths.
Other measures included in the Bill will allow authorities to ensure builders' skips are properly lit in a bid to reduce the risk of accidents on the roads.