Payment for watersheds environmental services is an important instrument of watersheds protection and management, which can transform fortune and reduce the inequity of environment and development between the upper reach and lower reach. Both market and government play a key role in the course. By the review of national and oversea research and practice of payment for watersheds eco-services, we analyze the progress of market for watershed service payment. 4 kinds of markets have been developed in many countries: self-organized private deals, open trade system, public payment system and eco-labeling. Market for watershed services is developing in many kinds of modes and largely influenced by