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Facing a decline in the quality of drinking water, New York City decided to invest between $1 billion and $1.5 billion in upstream improvements in wetlands, and in farming and forestry practices, harnessing an ecological approach to secure safe drinking water rather than building a water-filtration plant at a cost of between $6 billion and $8 billion7. To support this, both the Inter-American Development Bank and the Asian Development Bank have established a Natural Capital Lab - a one-stop shop to drive innovation across the banks in terms of 'nature-positive' approaches and financing. Gretchen C. Daily and Mary Ruckelshaus are at the Natural Capital Project in the Department of Biology, Sean N. Parker Center for Allergy and Asthma Research, Stanford Center for China's Economy and Institutions, and the Stanford Woods Institute for the Environment, Stanford University, Stanford, California 94305, USA. e-mails: gdaily@stanford.edu; mary.ruckelshaus@stanford.edu "The success ofpayments for ecosystem services has inspired replication worldwide."