In this paper, Liao River Basin was taken as the research object and field surveys were conducted in Fudedian, the source of Liao river mainstream and Panjin, the estuary of Liao River. Through the questionnaires, the willingness to pay (WTP) and willingness to accept (WTA) of the residents in Liao River Basin were analyzed. Then based on analysis of the existing ecological compensation standard measuring methods, the WTP and WTA using contingent valuation method (CVM) were measured and analyzed. Without considering other factors, and based on using the nonparametric estimation method, it was concluded the ecological compensation standard of Liao River Basin was 160.72 yuan / person’years. When considering other factors, using the parametric estimation we obtain that the ecological compensation standard of Liao River Basin was 255.97 yuan/person’years. Measuring the respondents’WTP and WTA at the same time and processing the average can actually reflect the respondents’real WTP, thus to a certain extent solving the problems of high compensation caused by formulating ecological compensation standards according to measuring WTP of respondents separately. In addition, the policy suggestions have been proposed from three aspects including financial transfer payment, ecological compensation forms and public participation system. This will not only protect residents’right to know and strengthen public participation and supervision, but also benefit the comprehensive implementation of ecological environment of Liao River Basin and establishment of a long-term mechanism of water resources protection.