The article shows that the Paraitinga Watershed, an important area located in the Atlantic Forest and responsible for the provision of several Ecosystem Services, has great potential for reconciling productive activities and natural resources conservation. There is, in the region, a great potential for increasing cattle ranching productivity, contributing for sparing areas for other uses such as restoration. For doing so, it is essential that policies are implemented in order to assure no negative effects of increased productivity occur, as well as to assure restoration success.