In 1921, the Local Agrarian Commission approved a grant of some , with the land to be expropriated from the Union en Cuale company. The grant was established as an "ejido" holding (a farming cooperative administered by the government). Legal squabbling over the size of the land grant, and the "ejido" status of the properties involved would stymie growth in Puerto Vallarta into the 1960s, as developers were reluctant to build anything too substantial on land for which one could not obtain clear title. ("Ejido" land is controlled by individuals who are given licenses to use it, but it could not be sold, subdivided or leased.)