Water Fund

A “Water fund” is based on investments in watershed services / land improvements by upstream land stewards paid for by downstream beneficiaries through a sustainable institutional mechanism. The beneficiaries (e.g. tourism sector, fisheries and livelihood uses of coral reefs) must be prepared to pay upstream landowners / users a fee for a defined and measurable improvement in biodiversity and ecosystem functions. This approach is relevant in Pohnpei where water quality has degraded due to poor land management with implications for coastal coral reef ecosystems. In 2018, the Pohnpei Watershed Protection Program (PWPP), of which TNC is a partner, established the Nett Water Fund.