The goal of this project was to develop a policy framework for an integrated system of water resources management on the Canadian prairies. The International Institute for Sustainable Development (IISD) recognized that the institutional capacity for implementing Integrated Water Resources Management (IWRM) in Canada is weak. The decision-making process remains a complex mix of municipal, provincial and federal strategies and jurisdictional control is often confused. IISD suggested that a watershed based IWRM system and Payment for Ecological Goods and Services (PES) could be successfully integrated to develop a participatory watershed management program, while enhancing market efficiency.