The Shoen

As the central government's power declined during the Heian era, a new type of institution emerged-the shoen (private estate). Private estates were plots of land whose owners were free from government interference and taxation. The government began to establish these estates in the 700's to provide Buddhist temples and Shinto shrines with income to fund their religious activities Gradually, the religious institutions became major landholders.

During the 700's, the government also began to allow tax exemptions to those who developed new lands for growing rice. The aristocratic families and religious institutions that had enough wealth to develop new lands acquired large holdings. Later, the Fujiwara and other high-ranking families in Heian-kyo used their influence to obtain ownership of other public lands. In the late 1000's, even retired emperors began taking land. By the 1200's, about half of the rice-growing land in Japan had been converted into private estates.

As the influence of the private estate owners increased, the power of the central government declined. With less public land, the government had less tax revenue to support its activities. The government and the aristocrats in Heian-kyo had to rely on bands of professional soldiers called samurai to protect the land and keep order in the countryside.