Abstract: Eco-compensation is a hot topic in academic and social fields in recent years, and to construct a more complete theoretic system and an operating mechanism is a matter of great urgency. Beginning with the nature of eco-compensation, i.e., to internalize the externalities and to clarity the limits of property rights, the eco-compensation practice in China was briefly reviewed, and, based on the elaborate analyses on five core elements including account of compensation, compensation receivers, compensation payers, eco-compensation criteria, and forms of compensation, a practice path on eco-compensation was constructed. Finally, some critical issues on improving eco-compensation mechanism, i.e., determination of reasonable implementation program, appropriate balance between interests relations, and accurate positioning of managers roles, were put forward.

Key words: Sediment, Wastewater irrigation, Eco-toxicity, Earthworm, Higher plant