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Water supply services (WSSs) are critical for the regional water balance and water circulation, but relevant studies have not established the relationship between WSSs and human well-being. This research identifies the scope of areas that benefit from WSSs from an ecosystem service flow perspective. Moreover, the path and quantity of the flow of WSSs are simulated to provide a scientific theoretical basis for ecosystem service management and ecological compensation. The Dongjiang Lake Basin is a national priority river basin in China where ecological compensation pilot programmes concerning water resources are top priorities. Dongjiang Lake Basin experienced an increase and then a decrease in the overall supply of water, with an average net water supply of 1096-1500 mm for the years 1995, 2000, 2005 and 2010. The water demand increased each year in service beneficiary areas (SBAs), varying from 387 to 580 mm. Overall, Dongjiang Lake Basin met the net water demands of the actual SBAs in the lower reaches, but a gap in the water supply and demand emerged gradually. This research provides an understanding of the functional mechanisms for the provision, demand and flow of WSSs and provides a scientific theoretical basis for ecosystem service management and ecological compensation. [ABSTRACT FROM AUTHOR]