The policies of ecological compensation of watersheds in thirteen provinces in China are analyzed. Based on the existing accounting methods for the compensation standards, their specific terms are discussed. It is found that the ecological compensation standards of watersheds are backward and relatively simple, that is, pollution damage compensation for the downstream reaches by the upstream ones. Some suggestions are put forward as follows: to achieve dynamic compensation standards, to develop two-way interaction mechanisms, to establish scientific and rational accounting methods, and to promote unified ecological compensation standards of watersheds.