In the Alto Mayo valley , Moyobamba, Peru a payment mechanism was introduced for sustainable forest use and reduction of water contamination by livestock and coffee wash. A committee was set-up by inhabitants of Moyobamba from the public meeting to implement the PES scheme. A fee on the water bill was introduced in August 2009. Income is managed by the steering committee. The regional government of San Martin covers the high transaction costs of the switch from slash and burn to agroforestry. This case shows that government involvement is a key for success. It is not clear to what extent the fee is voluntary
