The ejido system is a process whereby the government takes land from private hands and uses it as communal land shared by the people of the community. This use of community land was a common practice during the time of Aztec rule in Mexico.

It was not until the colonization of Mexico by the Spanish and other European settlers that this practice seemed to disappear and be replaced by the encomienda system. The encomienda system was abolished by the Constitution of 1917, with the promise of restoring the ejido system. This, however, did not happen until Lázaro Cárdenas became president in 1934. The purpose of restoring the ejido system was to give land back to the people and provide more food for the community. Under the ejido system, the land is owned by the government and is supported by a national bank. This bank pays for the equipment and goods necessary for the upkeep of the land. In essence, the bank has only just replaced the encomendero; however, the community member who works on the land gets paid for his or her work.