The principal area covered by this study consists of the plains between the Rio Grande and the Rio Piray north of latitude 18 15'S with some consideration in the north to the area between the Rio Piray and the Rio Yapacani. Within this study area agricultural development offers a large potential for profit and for capital growth. Currently the most profitable and extensively cultivated crop is cotton. Assuming adequate processing and marketing, vegetables grown during the drier months offer future possibilities for profitable production on an important scale. Wheat, although less profitable, is recommended for double cropping as a means of improving soil structure and reducing weed competition. If there should be a future decline in cotton prices, such crops as soy beans and peanuts can be expected to play an increasingly important economic role. Ground water and surface water resources are adequate in quality and quantity for considerable agricultural development. Water resources are, however, much less abundant than are the soil resources.