Abstract:Based on the case study in the upper reaches of Yixing,Huzhou and the lower reaches of Suzhou city,this paper adopts CVM method to analyze the ecological compensation willingness to pay and its influencing factors.The result shows that the amount of the willingness to pay in the lower reaches of TaiHu basin based on incentive mechanism is significantly higher than that in the upper reaches based on punishment mechanism,which is 56.90yuan/(household?year).The willingness to pay in Suzhou,Huzhou and Yixing city shows significant differences,the average annual maximum willingness to pay is 275.81yuan/(household?year),194.90yuan/(household?year)and 162.47yuan/(household?year)respectively.Factors such as respondents’age,family income,number of family members and the degree of dependence on the Taihu basin shows a significant correlation with the maximum willingness to pay.The payment method of river basin bidirectional ecological compensation should take government subsides,taxes and contributions.The economic level and the local residents’ affordability should be considered.Besides,bidirectional ecological compensation funds need accounts management and strict supervision