This proposal is for a study of the local governance implications of Payments for Ecosystem Services (PES), especially hydrological services, in the Amazon basin. Such payments, which may also take the form of development projects, compensate local actors for the opportunity costs of maintaining their rainforest environment through sustainable practices - in the case of indigenous peoples in Amazonia, this implies maintaining traditional livelihoods. As PES are increasingly accepted as a solution for REDD (Reducing Emissions from Deforestation and Degradation) in the context of international negotiations over measures to reduce the harmful effects of climate change, there is an increasing trend for such payments to be made on an international scale. PES is therefore quickly becoming a significant international development model. However, for it to be effective in reducing deforestation and therefore in mitigating climate change, and for it effectively to reduce poverty and improve wellbeing, it is vital that problems of local governance in the remote rainforest regions concerned by PES be well understood. However, no previous primary research has focused on the sociopolitical and governance implications of REDD projects. The fellow, a social anthropologist, will collaborate with an expert in environmental governance to gather original data on PES projects in Amazonia and develop a theoretical framework for studying the problems of environmental governance that they raise. He will produce three articles and a monograph, organise an international conference, and issue policy recommendations based on the research results. In addition to research training, he will gain interdisciplinary skills (training in political ecology) and organisational, collaborative and intersectoral experience (by collaborating with international development organisations), which will prepare him for a leading position at the interface of academia and international development practice.