Mahalwari system was introduced to remove the shortcomings of Ryatwari system. It was introduced in U.P., Punjab and various parts of central India. Main feature of this system was the land was neither associated with any zamindar and nor with any farmer. This system was actually took place with whole community of the village. Whole of the community was responsible to pay land revenue. It was fixed in community that what a farmer has to pay. If any farmer was unable to give his share then it was taken from the community of the village.
This system was known as the best system because features of both the earlier systems were there in it. The only drawback which was there in it was that people had to pay a lot of tax.