Industrialization began in the area in the 1890s but agriculture remained the most important economic activity. Most of the population in the area still lived in poor huts. In 1916, the haciendas and ranches of Iztapalapa were broken up and divided into ejidos; however the area remained extremely poor and there were disputes between Iztapalapa and neighboring Zapotitlán over ejido land. In 1920, the population was over 20,000 Iztapalapa would remain rural and poor until the 1950s, when its population and its urbanization began in earnest. In the 1940s, the urban sprawl of Mexico City had reached sections of the borough and furthering this was promoted by the federal government which favored industry over agriculture. In 1940, the chinampas suffered when the Canal de la Viga was drained, and only runoff from the Cerro de la Estrella was still available. Groundwater pumping dried swamps, allowing for more urbanization.