This report reviews the current status of payments for watershed services (PWS) in developing countries. It highlights the main trends in the evolution of these schemes, by identifying and analyzing case profiles, constraints and information gaps in Section 2, followed by a brief overview of general trends and setbacks at the international, national and local levels. Section 4 outlines the key characteristics of PWS, namely related to supply and demand and payment mechanisms. And, Sections 5 and 6 synthesize the available evidence on the environmental and social impacts of PWS, and draw lessons for the design of future initiatives.
Free online case study resources can be downloaded from the website that accompanies this study at: www.watershedmarkets.org
