While there is a consensus in Nicaragua that the security of property rights is a fundamental constraint to the long run development of the agricultural sector, there has been little empirical analysis to date of the relationship between land rights and rural economic activity.Using household level data collected between December, 1997– April, 1998 within the regions of Leon and Chinandega (known administratively as Region II), this paper investigates the relationship between rural land rights and agricultural credit, investment, and rural incomes (on farm and off farm).Results indicate tot