Spatial patterning often occurs in ecosystems as a result of a selforganizing process caused by feedback between organisms and the physical environment. Here, we show that the spatial patterns observable in centuries-old Balinese rice terraces are also created by feedback between farmers' decisions and the ecology of the paddies, which triggers a transition from local to globalscale control of water shortages and rice pests. We propose an evolutionary game, based on local farmers' decisions that predicts specific power laws in spatial patterning that are also seen in a multispectral image analysis of Balinese rice terraces. The model shows how feedbacks between human decisions and ecosystem processes can evolve toward an optimal state in which total harvests are maximized and the system approaches Pareto optimality. It helps explain how multiscale cooperation from the community to the watershed scale could persist for centuries, and why the disruption of this self-organizing system by the Green Revolution caused chaos in irrigation and devastating losses from pests. The model shows that adaptation in a coupled human-natural system can trigger self-organized criticality (SOC). In previous exogenously driven SOC models, adaptation plays no role, and no optimization occurs. In contrast, adaptive SOC is a self-organizing process where local adaptations drive the system toward local and global optima.self-organization | criticality | irrigation | evolutionary games | Pareto optimality T he geometric precision of Balinese rice terraces has inspired generations of postcard photographers. Viewed from above, a changing mosaic of colors appears: green when the rice is young, yellow as it nears harvest, silver when the paddies are flooded, and brown when they are drained. These colors are not uniform across the island, because Bali is an equatorial island with only two seasons, wet and dry. Consequently, farmers can plant their crops at any time, although they avoid harvesting in the rainy season. The colored patches that make up the mosaics are visible in Google Earth. Like many natural phenomena, patches show a characteristic power-law distribution of sizes. However, in this case, the patches are created by the farmer's decisions about when to synchronize irrigation schedules with their neighbors: Each patch displays the outcome of these choices. Adjacent patches tend to be correlated. This correlation weakens with distance, a relationship that also follows a specific power law (Fig. 1). To discover why harvests approach a maximum when both the size distribution of patches and the corresponding correlation functions fit power-law distributions, we need a model that relates the decisions of the farmers to the consequences for irrigation flows and rice growth.In Bali, water is regarded as a public good, the gift of the Goddess of the Lakes. Rice is grown in paddy fields fed by irrigation systems dependent on rainfall. Rainfall varies by season and, in combination with groundwater inflow, determines river flow. By virtue of...