A study was conducted to determine smallholders’ perspectives on the various forest environmental services, the types of rewards expected to enhance the revenue of small-scale farmers, and views on who should be the providers of rewards and preferred rewarding or payment mechanisms. The sites of the study were Barangay Gabas and Barangay Kilim in Baybay, Leyte, Philippines, immediately below the 2236 ha Community-Based Forest Management (CBFM) project where all the respondents are residing. Respondents’ perspectives on forest environmental services, rewards and rewarding mechanisms or approaches were assessed through individual interviews and focus group discussions. Provision of improved water quality was considered the most important forest ecosystem service while cash payments were the most frequently mentioned type of reward. One of the rewarding mechanisms that emerged was the drafting of a resolution to be forwarded to the municipal or local government unit for financial support
