Studying institutional change regardless of whether it is focused on transitional or developing economies, may prove most fruitful when focused on its structuring of the means of production—land, labour, and capital. This book does exactly that: it singles out land as an object of study and places it in the context of one of the world’s largest and most populous countries undergoing institutional reform, the People’s Republic of China. The book argues that private property protected by law, the principle of ‘getting-the-prices-right’, and the emergence of effectively functioning markets can not be imposed, but are the outcome of a society’s historical development and institutional fabric. In other words, the creation of institutions that are trusted and perceived as ‘credible’ in the eyes of social actors hinges in part on choice and timing in relation to the constellation of socio-economic and political parameters. It is demonstrated that disregarding these might result in the establishment of ‘empty institutions’ that have little effect on social actors’ actions, and can even cause rising inequality, bad land stewardship, and social conflict. The book concludes that the key to understanding China’s successes in rural reforms lies in the state’s hands-off approach and upholding an intentional institutional ambiguity that allowed for local, credible institutions to arise.