Payment for watershed services: exploring performance indicators for monitoring impact on water quality

Payment for Watershed Services (PWS) initiatives aim to improve water quality through conservation efforts. We assessed the effectiveness of PWS in the Couves stream basin (Brazil) by identifying key indicators of water quality. We found that ammonia nitrogen, turbidity, chemical oxygen demand, and Escherichia coli are important indicators of water quality, but are influenced by seasonal rainfall. Improvements in water quality were observed with increased forest cover and reduced agricultural activities. However, the persistent presence of total coliform bacteria after PWS implementation indicates the need for ongoing monitoring and specific interventions. Our findings support the development of adaptive monitoring strategies to improve PWS programs, and we provide policy recommendations to strengthen PWS initiatives globally.