This project, a collaboration between TCCC and TNC, achieved the conservation and restoration of 243.23 hectares in the Xaya-Pixcaya watershed in the Department of Chimaltenango, Guatemala. The Xaya and Pixcaya rivers provide approximately 30% of the water supply for Guatemala City, yet much of the land in the watershed is degraded. Forests comprise 31% of the land area and are threatened by deforestation due to large timber demand and land-use change driven by agriculture and ranching. Current trends suggest that forest cover will decrease by more than 13% over the next decade. The project activities consisted of four parts: (1) Protection of 177.24 ha of land that maintain at least 70% forest cover, achieved by installing physical barriers to avoid illegal wood extraction and developing conservation agreements with landowners through the national incentives program (PINPEP). Management plans for each site include forest fire prevention, signposting, boundary demarcation and maintenance, and monitoring of forest pests and diseases. (2) Agroforestry promotion on lands managed according to traditional agricultural practices has been achieved on 14.36 hectares by planting hedgerows and trees. The goal is to achieve at least 30% forest cover. (3) Restoration of lands with less than 30% forest cover that have been recently used for agricultural production. This has been achieved on 47.21 ha. (4) Passive restoration on 4.42 hectares