In this paper, we analyze a detailed household survey dataset to measure poverty and income inequality in Baan Mae Sa Mai - Mae Sa Noi, two villages in the Chiang Mai province, Thailand, where a sustained forest restoration program was undertaken. Our goal is to determine economic and social indicators to measure the economic impact of the upstream forest rehabilitation on the community, in order to establish appropriate guidelines for policy development to enhance the economic, social and quality of life. We found that, as a result of the forest restoration program, the economic growth of villages has been improved, although average income per capita has small differences in the two villages, and households have low inequality. However, transportation remains a challenge since the village is scattered and difficult to access to transport goods.