This study investigated factors that influence the Willingness to Pay (WTP) for watershed
services and conservation in Tanzania with the case study of the Lower Moshi Irrigation Scheme in
Pangani Basin, Tanzania. A total of 99 farmers were selected randomly from the Mabogini ward for
interviews using a Contingent Valuation Method. There were also focus group and key informants’
interviews. Structured and semi-structured questionnaires were used to gather information. Data were
analysed using multi-linear regression model. Results showed that 80% of the respondents showed a WTP
for additional cost of watershed services. Findings further showed that parameters of education, farm size
and household income were found to be statistically significant at p=0.05. However, there was inverse
relationship between WTP and farm distance, probably due to the perceived risk of decreasing water
availability as distance to the water intake increases. The results also showed R2
= 0.845 suggesting that
as high as 84.5% of the variation in the dependent variable (WTP) had been explained by the variables
included in the model. For effective WTP, the observed weaknesses should be addressed. These include
environmental education, participatory basin management approach and good governance of basin
resources.