Closeup of fishing net held by a man kneeling close to water — ©TNC

intro to Watershed Investment Programs

Watershed Investment Programs (WIPs) are initiatives designed to deliver ecosystem services (e.g., filtration, flood control, etc.) by investing in the protection or restoration of nature.

WIPs aim to deliver water security and associated co-benefit outcomes via a defined portfolio of NbS interventions within a specified service area (the “NbS Investment Portfolio”). A WIP is a programmatic approach for delivering Watershed Investments, which are defined as transactions between a service provider and payer or beneficiary where financial or economic value is exchanged for activities or outcomes associated with the maintenance, restoration, or enhancement of natural areas considered important for watershed services (Forest Trends 2016).

Watershed Investment Programs are customizable to the local context and can, therefore, be designed and implemented in a variety of ways. They can be driven by diverse typologies of stakeholders (e.g., NGOs, government agencies, direct water users, or development financial institutions) and delivered via different types of governance arrangements (e.g., collective action vehicle like a water fund, hosted program, umbrella agreement). Furthermore, they can leverage one or multiple funding sources to implement an array of nature-based solutions or combined green-grey investments.

Readers can find a short description of select WIPs below, but the Toolbox’s Case Studies section offers more in-depth examples.

Selected Case Studies

View of Rio Grande with vegetation on banks

The purpose of the Rio Grande Water Fund (RGWF) is to enhance storage, delivery, and quality of water from the Rio Grande River through forest management to avoid wildfire risks and associated sediment loading, flooding, and property loss. Launched in 2014, the RGWF is governed as an umbrella agreement with a collaborative charter across 100 entities. While each entity has its own implementation objectives and is responsible for raising the majority of its funds, there is a rotating Executive Committee that is responsible for executing some overarching functions. The executive committee prioritizes investments, conducts M&E, facilitates payments to implementers, and drives a diverse set of funding commitments across multiple organizations including to the USDA Forest Service, local water utilities, private corporations, and philanthropy. It aims to restore 600k acres of the Rio Grande’s forested watershed over 20 years.

Rio Grande Water Fund

New Mexico, USA

Manh Cuong Vu/TNC Photo Contest 2021

Severn Trent has deployed a range of actions to protect water resources and restore functioning ecosystems to achieve environmental standards at least cost. It has eight agri-scientists on staff and others who are seconded in river and wildlife trusts, major implementation partners for them.

Engaging with farmers to address key surface water quality pressures

© Roshni Lodhia

The Nature Conservancy established the Greater Cape Water Fund (GCWF) in collaboration with the City of Cape Town and a coalition of partners in response to serious water insecurity in the greater Cape Town region. The GCWF brings together private and public sector stakeholders to restore the city's water supply catchments. The Fund aims to support and align with existing initiatives and catalyse systemic change in catchment management through cost-effective use of resources, strengthened capacity, and robust monitoring and evaluation. The Fund will stimulate funding and implementation of catchment restoration efforts and, in the process, create jobs and momentum to protect global biodiversity and build more resilient communities in the face of climate change.

Greater Cape Town Water Fund (GCTWF)

Continue Your Learning

Close-up of a hose spout held by a man kneeling down

Water Security & NbS

partnerships, sponsors, and champions

Partnerships, Sponsors, and Champions

Sloth looking at camera while hanging from a tree bench on one paw

Glossary

Screenshot of the report

The WIP phases on the toolbox are based on the "Financing Nature for Water Security How-to-Guide report" and its associated deep dives. The guidance package was developed under the “Financing Nature for Water” partnership between TNC and Agence française de développement (AFD). This How-To Guide and associated Deep Dives were developed by TNC’s Resilient Watersheds Strategy which has been working with partners for more than 20 years to establish strong place-based watershed investment programs that promote meaningful water security and biodiversity outcomes.

Financing Nature for Water Security: A How-to Guide to Develop Watersheds Investment Program

Dog shaking his head out of water — © Burgess Lewis/TNC