By : Rajesh Rai, Priya Shyamsundar, Laxmi Dutt Bhatta, Mani Nepal
To improve the quality of water supplied to the city of Dharan in Nepal, local institutions can work together to develop and implement a Payment for Ecosystems Services (PES) scheme to reimburse farmers in the Sardukhola watershed for improved natural resource management. Water users in Dharan are willing to contribute some USD 118,000 per year, to reduce water-pollution and increase dry season water availability. Farmers in the watershed are willing to undertake the necessary work if they are
appropriately compensated. Such a scheme will augment government services and needs to be backed up by a national PES policy.
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