AbstractWe attempted to estimate the economic value of forest ecosystem services in a typical deforestation-afforestation area represented by the Heshui watershed in Jiangxi province. Environment services provided by restored forest ecosystem in Heshui would include basic goods supply, soil-water conservation, climate regulation, environment purification and biological habitats. A contingent valuation survey in 200 households in three typical counties, Anfu, Yongxin and Lianhua, was administered to estimate values of forest ecosystem. Respondents were given a current situation and hypothetical scenario to ask their willingness to pay to restore and protect the forest in this area. Analysis results from 170 valid questionnaires and 80 WTPs indicated that respondents would pay for the forest restoration and protection 238 yuan per mu yearly. And WTP was found related to basic social-economic variables: income, education level, household population, off-farm work members. This paper will give a brief guide of CVM application and allow decision makers to manage forest ecosystem for sustainable development in comparing different situations.