Loja province, Ecuador suffered from deforestation and water scarcity. Celica’s City Hall initiative established a process to rehabilitate the water ecosystem. A committee for environmental services was created to implement a water protection policy through water billing and attracting external financing. For 320 hectares of land, compensation was provided of USD 0.09/m3 and the remaining 290 hectares purchased from external sources. The funds were used for leasing and purchase of land, building of infrastructure and environmental education. By 2008, 28 hectare have been protected and 100 hectares purchased.
