The Hum bo Clean Development Mechanism project is Ih e only projeci in the coumryrnamong oth er burning issues of the go vernment in climllfe cha nge miliga tion processrnthrough usin g payments fo r ecosYs tem services !4'jilrest re gen errrrion. However itsrnsuccess depends all inclusion and exclusion no rms, participation of the localrnhouseholds in fo rest management, fair share of benejits and costs, statu s ofrnillstitutional se tup and intuition of property ri ghts. ThIl S, this stu dy concentrates 011rnthe analysis of socio -economic determinants of' lo cal houselJ old p urticipation, equityrnof benefit sharin g and stalus of in sti lutional setup 0 11 the service provision of thernproject. Th is sll/dy adopted descriptive statislics, Lorell ~ Curve, bellejit COSI analysisrnall d econometric models to analyze su rvey data col/ec ted j iom 157 sample householdsrnof the projeci. The resuli sholVs Ihal irregular paJ'lieipunts Ruill I/Iore than their jiJirrnsha re of labor al expense of regular participal1ls all d. di .l"{J'ibu tioll and sharing ofrnbene fils and c osts are nOI perreeil.' eq uitable. In addition to thai le vel ofparricipmionrnnega tively determined by gender d iscrimina ti on, SIC/ fe oj'agro- ecolog l', level of annualrnnel benefit share, distance 10 fo resl si te, unwillingness to invest rlJ e f und on publicrngoods and other so urce of income wh il e eillending 011 iII ee tin g and literacv levelrnincreased participation thereby increasing annual earrin gs of local households.rnFurthermore, the highest benejit shares from fores t regen eration using CleanrnDevelopment M echan ism of Pa yments fo r Ecosystem Se rvices g oes to the richrnhouseholds alld the poor earn less fo r their fa ir share of labor.rnKey Words: House hold Parti c ipati on, Eq uit y, Benefit anci Cos t, Pa yments forrnEcosystem Services, Clean Deve lopm ent Me chan is m, Humbo