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Communities located in upper watershed zones of northern Thailand do not have any land ownership documents, and although the State allows them to continue living and producing in these areas, they are forbidden from further expanding agricultural areas into forests. The reasons are: 1. Local community production is now linked through markets to urban consumption, which provide incentives for major expansion of agricultural production. 2. The State accepts that it is impossible to re-settle highland communities or them to lowland areas because it will cause major conflict and social problems. Thus, the State strategy is to control land use and prohibit the expansion of agricultural area. 3. The State has been seeking cooperation from villagers in controlling use of natural resources. Its view is that villagers can have more confidence that the State will not take away their land, in return for their helping state agencies to conserve forest. By now, the State is somewhat less antagonistic, and many villagers have given up hope for rights to own their land resources. Today people in upper watershed study areas are still living without land ownership documents and have only informal local land tenure arrangements. Thus, communities have decreased use of some lands and have not expanded agricultural areas, in order to avoid conflict with the State. Studies found that land problems are very important to communities, especially since lack of rights in their land means they cannot engage in commercial production and are limited to growing rice for household consumption and/or working outside the agriculture sector. Although they now have various occupations and higher incomes than in the past, their expenses are high because impacts from links with urban-centered economic development. Moreover, there are still many local problems related to land tenure and land use that are caused by lack of clarity and security.

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