Southern Palawan is one of the two testsites in the Philippines for the wealth accounting and thevaluation of ecosystem services (WAVES) project. SouthernPalawan has a significant remaining forest cover includingmangroves, extensive coral reefs, and fishing grounds.Challenges in natural resource management in SouthernPalawan include: (i) the increasing conversion of forestlands for plantation development and shifting cultivation;(ii) intensive mineral extension; (iii) illegal timberlogging and hunting; and (iv) destruction of coastalecosystem and overfishing. A comprehensive understanding ofthe natural capital of Southern Palawan is important tomanage the competing interests on natural resources and tosupport economic development.