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Many watershed development projects around the world have performed poorly because they failed to take into account the needs, constraints, and practices of local people. Participatory watershed management-in which users help to define problems, set priorities, select technologies and policies, and monitor and evaluate impacts-is expected to improve performance. User participation in watershed management raises new questions for watershed research, including how to design appropriate mechanisms for organizing stakeholders and facilitating collective action. Management of a complex system such as a watershed may also require user participation in the research process itself. An increasing number of watershed research projects are already participatory, however challenges remain to institutionalizing user participation in both watershed management and research.

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These proceedings present the background and objectives of the ReNED conference entitled "Ecosystem Services and Biodiversity in Developing Countries" held in August 2005, and provide an overview of the papers presented and the discussions and conclusions of the conference.The topic of the conference was suggested by a group of ReNED members. ReNED would like to thank the organising committee, which took up the challenge and hard work of developing a full conference proposal and organising the conference: Elmer Topp-Jørgensen, NORDECO; Gabor Lövei, Danish Institute of Agricultural Sciences; Helle Munk Ravnborg, Danish Institute of International Studies; Ivan Nielsen, Department of Biology, University of Aarhus; Michael Køie Poulsen, NORDECO; Niels Elmegaard, National Environmental Research Institute; Sten Struwe, Institute of Biology, University of Copenhagen; Thomas Kristensen, DBL -Institute for Health Research and Development.We are also grateful to the speakers, who contributed with stimulating presentations leading to a successful and productive meeting. We would also like to thank Cecil Konijnendijk for preparing a thorough review paper on the issue as well as the chair persons of plenary sessions and chairs and rapporteurs of the working groups, as well as all participants for their comments and questions, not least in the working group sessions. Table of ...34Relationships between institutions and regulation, markets and use of biodiversity. IntroductionThe overall objective of this second ReNED conference was to contribute to the achievement of the following ReNED objectives:• Increased interaction between researchers and practitioners and ensuring an improved level of information for the Danish environmental assistance in terms of knowledge and the latest research as well as more efficient coordination of information exchange • Strengthening of the contact to relevant international and regional research institutions, the private sector and NGOsThematically, the aim of the conference was to contribute to the understanding of the importance of biodiversity in terms of maintaining or developing ecosystems services such as fisheries, forest products, genetic resources for agriculture, pollination of crops and fruit trees, carbon sequestration in soils, water, human health, and eco-tourism. The conference addressed five key concerns:1. The importance of biodiversity for maintaining the quality and quantity of ecosystem services 2. The value of biodiversity in relation to ecosystem services. To whom is this value important? 3. Sustainable financing mechanisms and community based management systems. Which types of payments are appropriate in terms of institutional set-ups, the role of local population, etc, and what are the needs for support? 4. Biodiversity and ecosystem service monitoring. How can appropriate monitoring systems be designed in order to ensure sustainability of the system and the desired impact on the biodiversity and people? 5. How do we develop and maintain institutional capacity and go...

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