The Asian Development Bank and the National Development and Reform Commission of the People’s Republic of China (PRC) undertook a study on eco-compensation regulations development in the country, on which this publication is based. The study examined the PRC’s theory, practice, and legislation governing eco-compensation in selected ecological areas to map out the scope and content of a national eco-compensation regulation. Pursuit of its higher agenda of ecological civilization and development of its national eco-compensation regulation will require the PRC to capture the diversity that subnational projects have tapped, integrate its experience with eco-compensation at all levels of government into a coherent national regulatory framework, and harmonize this framework with existing laws and other legal instruments.