What are the political and economic effects of inequality in the distribution of land? Two different theoretical mechanisms suggest themselves. On the one hand, a more unequal rural society may see higher levels of social conflict (as the poor seek to redistribute land) and lower levels of public goods provision (as the rich sabotage public provision and substitute with private goods). On the other hand, a more unequal society with larger farms may be better positioned to invest in new technology and benefit from economies of scale. We examine this question in the context of colonial Punjab, where the colonial regime irrigated and distributed large areas of previously uncultivated arid land. We exploit changes in the formulae for land allocation which lead to more or less egalitarian distributions of land in individual villages. Preliminary results from a small subset of villages indicate that inequality is associated with higher levels of tenancy in the colonial period. In the 21st century, colonial inequality is associated with lower levels of public goods provision, with no effect on private goods provision.