Abstract
Payment for ecosystem services (PES) has emerged as a promising tool to participatory natural resource management and sharing of benefits among the stakeholders. However, very few successful models of PES are available for replication. This study deals with an analysis of a PES model currently operational in the Dhauladhar Range, Western Himalaya, where upstream villagers are paid for maintaining the spring-shed that supplies drinking water to the downstream township. To understand the flow of various ecosystem services (ES), institutional mechanism, and governance, we conducted an in-depth analysis of this project. The study identified lack of monitoring and weak governance as factors affecting smooth operation of PES. To revamp the PES model more effectively at the present and new sites in future stakeholder integration, valuation of ES and inputs in terms of capacity building of primary and secondary stakeholders would be critical.