/ Unsustainable agricultural policies and water and soil resource schemes have drained two thirds of Mediterranean wetlands since 1920. An outstanding example is Karla in Greece, a former internationally important wetland that was drained in 1962 causing environmental, social, and water and soil problems. The objective of this study was to assess the functions and values of Karla, at three periods of its history, and to relate them to major events in the management of the water and soil resources of its watershed. Information on wetland and watershed features was collectedfrom historical records and field visits. The results showed that the wetland in its pristine state had performed five functions to a high degree, one (groundwater recharge) to a moderate degree, and one (flood storage) to a low degree. Flood-control works, uncontrolled pumping, etc., in 1936-1961 degraded all functions except microclimate modification while, the bird support function was moderately altered. Drainage works in 1962 left a very small artificially flooded wetland with only four functions performed to an insignificant degree. Value degradation followed function degradation. It was concluded that past resource management has been nonintegrated. No consideration was given to the multiple functions and values of Karla. Previous restoration proposals involved the reinstatement of one or two functions only. The appropriate restoration scheme for Karla must be multiobjective and based on the integrated resource management of its own and the neighboring watersheds.KEY WORDS: Soil and water resources; Sustainability; Watershed management; Wetland functional analysis; Karla wetlandhttp://link.springer-ny.com/link/service/journals/00267/bibs/24n2p193.html