This paper evaluates the introduction of the Bolsa Floresta Programme (BFP) in the Juma Sustainable Development Reserve in Brazil. The BFP in Juma is a validated REDD project emphasizing payments for ecosystem services. The analyses are based on interviews with about 25% of the households in Juma, local leaders and representatives of the organiser of the BFP — the Fundação Amazonas Sustentável (FAS). The strategy of FAS is to avoid deforestation by providing support to local communities to improve their livelihoods. The paper analyses the influence of the BFP and the rules of the reserve on people's livelihoods, the local perception of the programme and the interactions between FAS and the local communities. It appears that the BFP is more of a development programme than a standard payment for ecosystem services initiative. As such it seems to have good potential, while we note that the main environmental effects are expected to materialize mainly in the future.