Published on behalf of the World Bank, this study is based on field surveys conducted in the Brazilian Amazon and covers 20 years of settlement experience. Its findings reveal that much of the Amazonian frontier land deforested by pioneers in the 1970s is becoming agriculturally unproductive. The authors conclude that small farmers in these areas must be prevented from moving on and clearing new frontiers, and rewarded for sustainable land management practices. They propose the innovative use of economic policies and new forms of co-operation between environmental and economic agencies at the local, national, and international levels, including the World Bank.