The concept of eco-compensation measures is being developed in China as an important means of providing a more diverse flow of benefits to rural people. Compensating up-stream landowners for managing their land in ways that maintain downstream water quality is particularly important for China. While biodiversity itself is difficult to value, it can be linked to other markets, such as certification in the case of organic agriculture. Drawing on the findings of the recently-released Millennium Ecosystem Assessment, this paper expands on some of the markets for agriculture-related ecosystem services (especially watershed protection), identifies relevant sources of information, and highlights some of the initiatives linking such markets to poverty alleviation. Making markets work for ecosystem services requires an appropriate policy framework, government support, operational institutional support, and innovation at scales from the site to the country.