Abstract The relationships between increasing population density, agricultural productivity, incomes and environmental conservation are discussed and illustrated in relation to Machakos District, Kenya, 1930–90. Four positive effects of increasing population density are identified: increased demand, increased labour, increased idea generation, and cheaper social and physical infrastructure. Where government policies permit these to lead to greater involvement with external markets, the mutually reinforcing effects of capital investment and new technology adoption lead to output rising much faster than population, outweighing any negative effects of population growth. However, future trends cannot be predicted from past performance, since the rising price of land and water may retard the realization of economies of scale in infrastructure development.