Abstract: A significant quantity of native vegetation and biodiversity exists on privately managed rangeland properties. However, landholders do not always conserve these resources at a level that society desires, due to a lack of appropriate market signals. Policies involving regulation can impose substantial costs to landholders. Market Based Instruments (MBI) have therefore been introduced to provide market incentives for conservation. In a case study of an MBI scheme, we estimate the costs of protecting biodiversity on privately managed properties in Western NSW. The cost of this on different conservation areas varied widely.