SUMMARY

Aquatic ecosystems sustain life on earth, regardless of mankind's understanding of the biology, chemistry, and geology involved. Population increase coupled with intense anthropogenic activities and unplanned developmental activities have impaired the ecosystems’ functions and are resulting in the extinction of these fragile ecosystems. The consequence may be long term and possibly irreversible changes. Such changes reduce the value of the ecosystem, even affecting the economy. Understanding of functions and values of the ecosystem is crucial for appropriate decision making. The decisions with the holistic ecosystem approach ensure the sustainability of the ecosystems. This paper with case studies discusses the valuation of ecosystems considering the direct, indirect and existence benefits. The economic valuation of wetlands helps to understand the constituents’ functions and benefits and this exercise could act as a catalyst for wetland conservation. The services provided by these wetlands are innumerable and these values are often lost through inappropriate development or used inefficiently due to lack of knowledge about the vital functions performed by them. Linkages between use values and ecosystem functions are to be highlighted to raise awareness among the users. The role of the stakeholders especially public and private sectors in managing the ecosystems in a sustainable manner has been outlined while evolving the management strategies.