The water quality of Paldang reservoir now grades the third class water based on COD criterion, meaning that it is no longer suitable for drinking. This study attempted to estimate the economic value of water quality improvement in Paldang reservoir using CVM. The survey used payment card format to measure the willingness to pay of the questionnaire respondents for the improvement of water quality and also factors that affect the WTP. The survey showed that men rather than women, those had higher income and paid more water supply charges, those who lived in the area for a shorter period of time, those who do not use city water for drinking, had willingness to pay more. The WTP was estimated 4,952 to 5,497 won on a monthly average. The economic value of the improvement of the water quality of Paldang reservoir was estimated between 344.2∼382.1 billion won on an annual basis.