In the current fraught relationship between nature and human society, land conservation and utilization have spawned intensive conflicts that require mediation. The present study explores this issue of coordination between nature and society in a fragile watershed located in northeastern Taiwan: the Lanyang River Watershed. Land zoning in this area has been historically classified and legally implemented, and additional development is constrained by an application review process. Currently, additional land utilization is still in demand in sensitive areas of this watershed, such as for mining and tilling. Due to the geographically, geologically, and climatically fragile characteristics of the watershed, the hillside residents have benefited from the conservation of nature with comprehensive ecosystem services but are at the forefront of the loss of life and property caused by forest ecosystem degradation. They are one of the key local resource users and main stakeholders. Applying the contingent valuation method to survey the hillside residents, the present study assessed the economic value they receive from the comprehensive ecosystem services offered by the natural forest ecosystems. Their opinions are explored using a survey on their awareness of ecosystem damage, their opinions on damage compensation, and on the feasible compensation channels for damage. As the study results ascertained the high value of the comprehensive ecosystem services continuously delivered by the conserved forest ecosystem, the study affirmed that conservation in the area classified and zoned as sensitive is an economic beneficial policy. With a high regard for ecosystem services and awareness of the impact of degradation and of the general agreement for the feasibility of channels of damage compensation, the continuity of conservation for these comprehensive ecosystem services is the preferred strategy for the local hillside residents. To emphasize this further, the opinions of the local community at the intersection of nature and society, where there is a delineated land zoning framework, strongly favor conservation over intensive resource exploitation and agricultural expansion, making further development an unfavorable strategy.