Flooding in the lower Rio Grande catchment has seriously damaged agricultural rice and soy activities, typically high value agricultural products for the area. In order to minimize future flooding damages, the possibility of enacting a biosphere reserve in the watershed is being explored. Since no governmental funding is available for these activities, a change in the traditional funding mechanisms are needed. Natura Bolivia has proposed implementing a payment for environmental services scheme for the areas of watershed protection, biodiversity, carbon sequestration, and ecotourism. The total area of the biosphere reserve will total 734,000 ha, of which ~350,000 ha will comprise two core conservation zones, with the remaining area designated for sustainable development.