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values and 3) Transfer of the entire valuation function from the original study (see e.g. Garrod &Willis, 1999). The simplest procedure is transfer of unit values, e.g. the estimated willingness topay per ha of a re-established nature area. It will often be necessary to adjust the unit values,e.g. by considering differences in income between the research area and the project area. Froma methodical point of view, the best procedure would be to transfer the entire estimatedvaluation function from the original study – with the various explanatory variables, regardingsocio-economic and geographic characteristics etc. However, data limitations often set narrowlimits on the extent to which the original estimates can be calibrated.Considering the limited possibilities of correcting the numbers, selecting the proper valuationstudies becomes the essential criterion, regarding the reliability of the transferred benefitestimates. Desvousges et al. (1992) identify five criteria for selecting valuation studies for thepurpose of transferring benefit estimates:• The employed valuation studies must fulfill state-of-the-art criteria for economic valuation• The studies must thus contain regression results, describing the willingness to pay, as afunction of socio-economic characteristics etc.• The research area and the project area must, to the greatest extent possible, containcoinciding characteristics regarding the natural setting, as well as the pattern of utilization• Consumers´ substitution possibilities between various environmental benefits in theresearch area, must be similar to the substitution possibilities found in the project area.Experiments with the methods of benefit transfer show, that there is a considerable uncertaintyconnected with this sort of benefit evaluating (Garrod & Willis, 1999). Yet, benefit transfer isrecommended as an acceptable procedure by e.g. American and British environmentalagencies (see U.S. EPA, 2000 and U.K. Treasury, 2000). All things considered, it seems thatone can get a fair impression of the orders of magnitude for various environmental benefitsthrough benefit transfer. As far as possible, however, actual policy-analysis should be based ondata collected through primary research.Study methodologyParticipatory techniques were used as the principal methodology, for collecting informationabout the multiple uses of the selected wetlands. Most of the tank users live in the vicinity of thetank, and they earn their living mainly from agriculture, livestock, and the resources extractedfrom the tank. Paddy is the main crop while other field crops like vegetables, chillies, onion,banana etc are also cultivated in the highlands, using the water provided by the tank directlyand indirectly through subsurface water. Other main direct services of the tank are providingfish, flowers, lotus roots which have a good demand as a nutritious food, sedge, edible leavesand water for bathing and washing. Chairmen of the village tank organizations, officials of the IDand the MASL, and village level government administration officers called Grama Niladaris wereinterviewed prior to the meetings held with the community, to discuss the existing and pastmanagement systems of tank resources. It focused mainly on identifying all the different uses ofthe tank, and then ascertaining how they help to upgrade the livelihood of villages. Thesediscussions were very helpful to prepare the interview guide for the FGDs.Further, the discussions with the Chairmen of the village farmer organizations were very helpful,in providing initial information about the study, and to introduce the team members before thestudy commenced. In this respect the letters issued by the Manager, Kala Oya river basin, inSinhala, were very useful as all the farmers knew him by name. Otherwise, the communities aresuspicious about outside visitors to the village and could think there may be hidden objectiveswhich are not favourable to the villagers. The main reasons for this suspicion is due to, twopopular issues in the country at present. One is the new economic reforms which are going tobe implemented in the country. As a result of new economic reforms in the country, a new waterpolicy was prepared. There were discussions about charging a fee for water used forThe Value of Traditional Water Schemes:Small Tanks in the Kala Oya Basin, Sri Lanka31