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Rural communities worldwide face a decrease of critical ecosystem services caused by replacement of native forests by commercial plantations. Replacement of native forest by commercial plantations decreases water provisioning, with possible negative impacts over well-being. We tested this hypothesis in Central Chile. We assessed subjective well-being (SWB) and local perceptions of changes in forest cover and water provision among 78 rural families. We also assessed if the Shifting Baseline Syndrome (SBS) affects the perceptions of environmental changes and their implications in SWB. Individuals perceived less forest cover than 20 years ago, and this is seen as a factor of decreased livelihood, availability of forest products, and water provisioning for households. People also reported less water available than 20 years ago. The main drivers associated with decreased water provision were the establishment of pine plantations (44% of individuals) and drought (44%). A better-off SWB was associated wi...