Burma performed remarkably in terms of economic development in the later half of the 19th century under British colonial rule. It was the export of various primary products, especially rice, which brought about economic growth. There was a substantial export boom in Lower Burma, and many farmers enjoyed economic prosperity. But although economic development went well smoothly in the beginning, serious changes gradually developed in the rural society of Lower Burma in the 1880's. Rented areas began to increase greatly, while landlords and tenants became separate classes. The differences in terms of the size of land holdings widened to a significant degree. Stimulated by a raise of the prices of paddies, lands and rents, capitalists who were rich landlords and traders, came to reclaim the waste-lands actively and rented them to tenants. On the other hand, non-agriculturists, money-lenders like Chattyar or traders also gathered lands through the foreclosure of mortgaged lands. Thus, it will be understood that there were considerable changes in the rural society towards the end of last century. This paper tries to analyze the causes and process of these changes.