Why does Java have an "unreachable statement" compiler error?

Because unreachable code is meaningless to the compiler. Whilst making code meaningful to people is both paramount and harder than making it meaningful to a compiler, the compiler is the essential consumer of code. The designers of Java take the viewpoint that code that is not meaningful to the compiler is an error. Their stance is that if you have some unreachable code, you have made a mistake that needs to be fixed.

There is a similar question here: Unreachable code: error or warning?, in which the author says "Personally I strongly feel it should be an error: if the programmer writes a piece of code, it should always be with the intention of actually running it in some scenario." Obviously the language designers of Java agree.

Whether unreachable code should prevent compilation is a question on which there will never be consensus. But this is why the Java designers did it.

A number of people in comments point out that there are many classes of unreachable code Java doesn't prevent compiling. If I understand the consequences of Gödel correctly, no compiler can possibly catch all classes of unreachable code.

Unit tests cannot catch every single bug. We don't use this as an argument against their value. Likewise a compiler can't catch all problematic code, but it is still valuable for it to prevent compilation of bad code when it can.

The Java language designers consider unreachable code an error. So preventing it compiling when possible is reasonable.

(Before you downvote: the question is not whether or not Java should have an unreachable statement compiler error. The question is why Java has an unreachable statement compiler error. Don't downvote me just because you think Java made the wrong design decision.)

There is no definitive reason why unreachable statements must be not be allowed; other languages allow them without problems. For your specific need, this is the usual trick:

if (true) return;

It looks nonsensical, anyone who reads the code will guess that it must have been done deliberately, not a careless mistake of leaving the rest of statements unreachable.

Java has a little bit support for "conditional compilation"

http://java.sun.com/docs/books/jls/third_edition/html/statements.html#14.21

if (false) { x=3; }

does not result in a compile-time error. An optimizing compiler may realize that the statement x=3; will never be executed and may choose to omit the code for that statement from the generated class file, but the statement x=3; is not regarded as "unreachable" in the technical sense specified here.

The rationale for this differing treatment is to allow programmers to define "flag variables" such as:

static final boolean DEBUG = false;

and then write code such as:

if (DEBUG) { x=3; }

The idea is that it should be possible to change the value of DEBUG from false to true or from true to false and then compile the code correctly with no other changes to the program text.

It is Nanny. I feel .Net got this one right - it raises a warning for unreachable code, but not an error. It is good to be warned about it, but I see no reason to prevent compilation (especially during debugging sessions where it is nice to throw a return in to bypass some code).