Abstract
Abstract In view of no generally accepted ecological compensation standards and methods at present, this paper discusses the introduction of the negotiation system to the process of ecological compensation for water source areas. That is, the government in water source areas and the downstream regions of river basins should confirm their respective rights and obligations and then establish their compensation standards through negotiations according to the different purposes of water use. The amount of compensation should be determined in the comprehensive consideration of the quality, quantity and compensation price of water. Through open and fair negotiations, an institutional arrangement will be set up, which can make the water source areas and the downstream regions of river basins fully express their true preferences and their independent choices on the ecological environment.
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