The way in which the land is held has a great impact on the environmental area. For effective development to be carried out, careful thought should be given on how the land will be gotten and from whom. This work critically examines the way land is held and owned (the land tenure system) in the study area of Aguata Local Government Area of Anambra State and also focused on the agricultural development in the aforementioned area. In determining the effect of land tenure in Aguata Local Government Area, this work examines the availability and accessibility of land to farmers, investigates the overall impact of land tenure system and the role of government on agricultural development in the study area. The information used in the study was obtained using a combination of questionnaires and interview as well as review of related literatures. The questionnaires were distributed to farmers in the study area. The data was analysed using chi-square statistical tool, tables, figures, and percentage based on classification. The study shows that security of tenure seems to be the major implication of the land tenure system prevalent in the study area resulting in lack of investment in agriculture. The study recommended series of direct investment by the government including farm settlement scheme and limitation to right of land ownership in the favour of agricultural development in the study area.