The process of policymaking in India has largely ignored the nature of the interaction between nature and institutions. One aspect of this interaction, that is, the consequences of the efforts of the state to overcome the constraints posed by nature is discussed in this essay. It does so by taking William Cronon’s concept of first nature to the southern Karnataka district of Mandya to argue that, despite the success of the Krishnaraja Sagar dam, small peasant agriculture that was the consequence, at least in part, of first nature limited the growth of agrarian capital in the district, leaving it dependent on state capital.