With the development of the society and economics, the environmental problems have been becoming more and more serious. At the time of billions of pollution control projects being carried out, the question of how the environmental benefit of these projects really was came out. Evaluation of environmental damage and benefit could not only be used as a support in the process of environmental economics policy making, but also was the key step of combining the economical effect of the environmental problem into the integrated decision process. This paper chose the in-lake river of Dianchi- Panlong as the object, by using the contingent valuation method(CVM) studied the willingness to pay(WTP) of people on the pollution control projects of Panlong river.This paper is made up of five parts. The first part demonstrated the significance and background of pollution control projects of Panlong river; the second part identified the related concepts, reviewed the theories and application of CVM around the world; the third part analyzed the basic situation of Dianchi basin, further stated the positive effect of WTP investigation of Panlong river pollution control projects on the protection measures of Dianchi Lake; the fourth part evaluate people's WTP on Panlong river pollution control projects by questionnaire survey statistic and model analysis, and also research it's influence factors; the fifth part put forwards the corresponding strategies according to the conclusion above, and summarized the innovations and defects of this study.
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