The study looked at how ecosystem services (ES) can be managed in Southern Chile for water supply. They found that the current rules and institutions in place don't fully support ES governance. The formal system is weak in terms of nature conservation, and different agencies manage land, water, and forests separately. The concentration of water rights could make it hard for ES beneficiaries to benefit, as anyone can buy water rights. Conflicting values about nature create tensions, especially between hydroelectric companies and indigenous communities. Overall, the study suggests that implementing ES-based environmental governance in this area may be challenging due to these obstacles.