Payments for water-related ecosystem services (PWES) are increasingly popular in promoting water ecological conservation, and their impacts on development are of considerable interest. This study estimates the economic impact of PWES on protected areas by applying the synthetic control method.Using the Middle Route of the South to North Water Diversion Project in China as a case study, we nd that per capita GDP in protected areas increased markedly relative to a synthetic control region, and PWES has a positive economic impact. In addition, we conduct a variety of placebo tests to verify the validity and robustness of the results. We believe that the main factor of the positive economic impact lies in the development of the ecological-economic industrial system. This study provides a baseline for synthetic control analysis of PWES to compare regions of interest and their counterfactuals, and the ndings of the case study provide reference to the protected areas for their economic development.