Watersheds are important for the sustenance of life since they provide ecosystem services to human communities and local biodiversity alike. The ongoing changes caused by the anthropogenic exploitation and use of the surrounding ecosystems have serious repercussions on the water quality and quantity of local water bodies. We have developed a Participatory Framework for analyzing threats, consequences, and solutions that will allow us to gain insight into the community-resource interactions. We evaluated socioeconomic and landscape factors that could be influencing the resilience of commons, including communities' perception of the threats to natural resources, the consequences of their loss, and the solutions they perceive as most effective to prevent this loss. The incentives required to promote widespread transition toward sustainable coffee production are poorly understood, leaving policy makers with insufficient information to design scalable forest conservation initiatives. We also developed a choice experiment to assess if Payment for ecosystem services as a viable option for improving the sustainability of coffee production in Honduras. Coffee farmers may be reluctant to set aside significant percentages of the landscape for forest restoration. Low-income coffee farmers appear to be more averse to forest conservation, suggesting the need for coupling monetary incentives with insurance against revenue losses. SWAT was used to develop a large-scale watershed model for the Ulua watershed. This model allowed the development of streamflow, sediment, and nutrient data to provide a baseline that can be used to define further work in the area and to consider the future evaluation of climate and land use changes and their effect on the watershed. Ulua is an important watershed in Honduras. It is the second biggest watershed in the country, has a high amount of agricultural production with economic relevance, and has extensive flooding problems in urban and rural areas. Developing a hydrologic model for this watershed could provide relevant information to improve its management.