Despite the dynamism shown by the agricultural sector as a whole the performance of eastern India which is characterised by rain-fed agriculture has remained somewhat dismal.This study attempts to shed some light on the nature of economic and institutional changes occurring in rice production systems of two villages in eastern Uttar Pradesh over the last 15 years. An overarching question the study explores is whether eastern UP's agrarian relations characterised as being semi-feudal permit expansion of production through the rise of new institutions and spread of knowledge.