This thesis examines institutional change on Canadian First Nation reserves. Specifically, it looks at the factors that may affect a First Nation’s decision to adopt the Framework Agreement on First Nation Land Management, which allows First Nations to opt out of the 34 land code provisions of the Indian Act and develop individual land codes. The Framework Agreement is promoted as a way for First Nations to gain greater autonomy over their lands and to promote economic development. Using data from First Nation reserves and populations, a probit model was used to determine the effects of certain characteristics on the probability a First Nation will adopt the Framework Agreement. The results of this study indicate that proximity to an urban centre positively affects the probability that a First Nation will adopt the Framework Agreement.