As in many fen land regions in East Germany, long-standing intensive arable farming--enabled by reclamation--has caused soil deterioration and high water runoff in the Schraden region. The more than ten years of economic and political transformation that followed the breakdown of the socialist regime has worsened the situation and even added new problems. The visible consequences are droughts in the summer, waterlogged plots in the spring, and worn-down water management facilities that operate in an uncoordinated or even unauthorized way. Given the local public-good character of some features of the fen land, the common-pool character of the ecosystem's intermittently scarce resource water, and the conflicting interests of regional stakeholders, it is argued that the reallocation of property rights over reclamation systems, together with ineffective coordination mechanisms, have caused the physical and institutional failure of the water management system and so impeded appropriate land use.