Bidding Customs and Habitat Improvement for Matsutake (Tricholoma matsutake) in Japan. A brief history of Japan’s matsutake production, use, and management is presented, with emphasis on habitat improvement efforts and the land use tradition of iriai. Bidding systems for allotment of matsutake gathering rights are discussed. Three villages with different bidding systems are compared to see what effects the bidding systems have on village finances, matsutake production, and matsutake habitat enhancement. Contrary to expectations, habitat for matsutake was not improved when land owners were guaranteed the gathering and selling rights to matsutake growing on their own lands. Instead, habitat improvement was most successful and matsutake production was highest on community-owned lands in Oka Village, where the iriai tradition is strongest.