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This paper outlines the power configuration and path dependence of state intervention in China’s Xin’an River Basin Eco-compensation Pilot (XRBEP) through the lens of state rescaling. The findings demonstrate that state rescaling of watershed eco-compensation, as a process of state power reconfiguration triggered by capital accumulation, reflects the adaptive governance of China’s central government. We argue that the path dependence of state intervention always coexists in the rescaling process of watershed eco-compensation. Tensions exist between the power reconfiguration and the path dependence of state intervention, which have promoted the process of state rescaling and the evolution of China’s watershed eco-compensation policies.

State rescaling, power reconfiguration and path dependence: China’s Xin’an River Basin Eco-compensation Pilot (XRBEP)