Historical heritage is proving an ideal field to apply contingent valuation for estimating individual as well as collective preferences as goods tend to be non-market and publicly owned. Yet despite this, findings are seldom used to draw up cultural policies or assess cultural heritage related projects. The current paper thus posits an approach which merges contingent valuation and cost-benefit analysis to design a cultural policy aimed at restoring the urban cultural heritage of the city of Valdivia (Chile). Contingent valuation is used to estimate the expected benefits from heritage for both local residents and tourists visiting Valdivia. We then apply cost-benefit analysis to the findings to evaluate a project to restore the historical ensemble through a non-profit foundation. The originality of the proposal lies in its merging the two approaches and may prove appealing to developing countries in which much of the heritage has been neglected and left to deteriorate, and where few or no resources have been devoted and a lack of effective institutional schemes to address the situation is evident.