Forest ecosystems provide multiple benefits for human beings and can be considered a sustainable natural resource. Evaluating forest resources is a key step for studying their sustainable use. Water resource nourishment is one of the major functions of Taiwan's forest ecosystems. Even though this function has environmental use value, estimating its non-market value is intricate and difficult. The purpose of this paper was to estimate the economic value of water resource nourishment of the Lienhuachih experimental watersheds. The results show that the avenge shadow price of water is NT$15.36 per m^3, and the total economic value of water resource nourishment of these watersheds of the Lienhuachih Experimental Forest is about NT$25.44 million annually.