Wetlands comprise an important ecosystem but are under threat in developing countries due to increasing human encroachment. Community-based conservation is an approach for sustainable management of the wetlands near settlements. This study investigated willingness to pay of local people for community-based conservation activities and the variables affecting it in the Ghodaghodi Lake Complex, Nepal. A sample of 217 households residing near the lake complex was surveyed. The result showed that households were willing to pay for community-based conservation activities, at an average of NPR 378 (US$5.4) per annum. The age of the household head, wetland income, agricultural income and prior experiences on participation in conservation activities positively affected household’s willingness to pay. Government expenditure of at least the amount of willingness to pay estimated by this study for the community-based conservation activities would be economically and environmentally justified.