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Economic incentive programs are increasingly promoted in the United States and Europe as a method to encourage sustainable forest management practices on privately owned lands. This paper employs spatial analysis to evaluate the effectiveness of one such program created in Illinois through passage of the Illinois Forestry Development Act (IFDA). The Act establishes economic incentives available to private landowners who develop forest management plans and/or establish tree plantings. This paper provides (1) a description of the Illinois Forestry Development Act and its associated incentive program and (2) an evaluation of the program's land enrollments in respect to their potential for improving surface water quality. In order to evaluate the legislation in terms of water quality benefits, this paper develops a novel analytical approach utilizing a geographic information system (GIS) and high-resolution digital satellite imagery to locate and characterize land parcels enrolled in the IFDA landowner assistance program. The program has done well in enrolling lands located on steep slopes and has been moderately successful at enrolling lands within environmentally impaired watersheds. There is room for improvement in enrolling lands within the riparian areas of impaired waterways. However, the ability to enroll new lands in the program is limited by the program budget.