Local land uses play a critically important role in regulating hydrological services like surface-water runoff. This runoff influences the supply of water to streams and lowland agriculture. Land-use management decisions, in turn, are influenced by economic return. This article examines the tradeoffs between surface-water runoff regulation and income from crop production by using the land-use change impact assessment model and an economic analysis for a case study in Tat Hamlet Watershed, north Vietnam. The traditional composite swidden agriculture was used as baseline scenario, since it has been practised by farmers in the study area for decades. Two alternative scenarios were tested and compared with the composite swidden agriculture: expansion of maize monoculture and introduction of rubber plantations in the uplands. Among the land-use scenarios tested, rubber plantations appear to be better alternatives than maize monocropping in terms of surface-water regulation and improving economic return. However, implementation should consider the interests of local stakeholders as well as an analysis of possible risks and uncertainties involved.