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The Shihmen reservoir is an important water source for about 3.4 million people in northern Taiwan.To protect reservoir water quality,it is necessary to conserve and manage the associated watersheds.Riparian buffer strips can trap pollutants emitted near a watershed.The location and design of a buffer strip can influence its pollutant-trapping efficiency.Any commitment of land for use as a riparian buffer strip must consider the projects economic effectiveness.The present research is a cost-benefit analysis of various possible land developments in the Shihmen reservoir watershed.This study has applied a regression equation to evaluate pollutant-trapping efficiency levels of riparian buffer strips of various widths.Planned buffer strips have been evaluated in terms of net economic effectiveness and benefit-cost ratio.Results indicate that the optimal buffer strip width is 30 m for the Shihmen reservoir watershed.