Chapter 3 starts the chronological review by looking at the role of law during the Early Reform Era (1978–1989). In this era, the Party-state vested economic decision-making authorities with its local governments, giving them a relatively free rein to experiment with and administer economic activity by limiting central law-making. The chapter tracks how such political–economic relations were bolstered by the Party-state’s choices with respect to the use of law. It also shows how, as the era progressed, the law was used to carve out and legitimize politically palatable forms of market activity.

Despite the Navajo Nation’s size and relative lack of development, tribal members often find it nearly impossible to get permission to use land. This chapter focuses on homesite leases and, revisiting a topic first introduced in Chapter 3, grazing regulations. Both areas are ones in which the tribal government and tribal leaders recognize contribute to stunted growth on the reservation. The chapter argues that returning to a use-dependent understanding of property rights offers a way to free up land for those who want to make a life on the reservation.