The prices charged to consumers for water consumption are typically not reliable measures of the value of the water to consumers, as they are often set administratively, with no regard for supply and demand. This can be misleading, as the ecosystem services essential for providing drinking water can often not be protected on the basis of the price paid for it. Payments for ecosystem services is a new financing mechanism that rewards stakeholders who conserve natural resources by providing payments for valuable goods and services resulting from their conservation activities.