Payments for Watershed Services (PWS) programs are receiving attention throughout the U.S. as a
policy option to secure water quality in a cost effective manner. PWS programs face many challenges
in implementation; prominent among them is designing a program that generates interest and
participation among the suppliers of water quality, upstream private landowners. This report seeks to
inform the development of a PWS program in Southeast Maine by examining the system of
incentives needed to encourage private forest owners to adopt conservation best management
practices that enhance water quality downstream. While focused on the Sebago Lake watershed,
which provides drinking water for the Greater Portland area, this project approaches the localized
study as a specific case to identify biophysical, institutional, economic and social factors that favor or
limit the scaling up of PWS schemes. This analysis combines a systematic review of literature on
landowner preferences to existing incentive programs, interviews with program administrators from
PWS schemes throughout the U.S., and interviews with key stakeholders in Southeast Maine. This
report provides a set of recommendations organized around: segmentation of landowners; targeting
and positioning PWS programs; selecting attractive program attributes; and leveraging effective
outreach channels and tactics. Key recommendations include: co-create program attributes with
landowners; encourage peer to peer communication to build support and awareness; provide a
portfolio of financial and non-financial incentives to increase interest; and partner with existing
conservation organizations to add capabilities and resources.