Abstract. Watershed eco-compensation is an effective way to solve conflicts over water allocation and ecological destruction problems in the exploitation of water resources. Despite an increasing interest in the topic, the researches has neglected the effect of water quality and lacked systematic calculation method. In this study we reviewed and analyzed the current literature and proposedatheoretical framework to improve the calculation of co-compensation standard.Considering the perspectives of the river ecosystems, forest ecosystems and wetland ecosystems, the benefit compensation standard was determined by the input-output corresponding relationship. Based on the opportunity costs related to limiting development and water conservation loss, the eco-compensation standard was calculated.In order to eliminate the defects of eco-compensation implementation, the improvement suggestions were proposed for the compensation standard calculation and implementation. IntroductionWith the excessive exploitation and utilization of ecosystem services and excessive pollutant discharge, watershed eco-compensation (WEC), as an economic way of environment external effect internalization and an economic promotion method for ecosystem management, obtained widely attention. Since 1970s, the eco-compensation decision process and value impact assessment had been studied in many countries. A large number of compensation study cases of ecological environmental services have been reported, but the study scope is mostly limited to the evaluation of watershed ecological services, and the calculation methods for watershed eco-compensation standards had regional characteristics.Watershed eco-compensation standards (WECS) affect the feasibility of compensation mechanism. The essence of WECS is to determine the compensation amount, which can reflect ecological service values and environment protection input costs. Accurate calculation of water resource value is the prerequisite to determine the eco-compensation standard of the river basin. Xu and Han calculated related values of water resources with economic methods in different perspectives and levels and deduced the upper and lower limits of eco-compensation standards. Some scholars proposed new ideas for calculating the compensation standard based on the integrity of water quantity and quality, solving the defects of current economic calculation methods. The Game model by Cao, the eco-compensation standard calculation method based on water environmental capacity by Pang, and the ecocompensation standard calculation method based on water quality and total pollutant amount by Lu revealed the potential relationship between water quality and eco-compensation standards.