The Kadomtsev-Petviashvili (KP) hierarchy is considered together with
the evolutions of eigenfunctions and adjoint eigenfunctions. Constrain
ing the KP flows in terms of squared eigenfunctions one obtains 1 + 1-
dimensional integrable equations with scattering problems given by pse
udo-differential Lax operators. The bi-Hamiltonian nature of these sys
tems is shown by a systematic construction of two general Poisson brac
kets on the algebra of associated Lax-operators. Gauge transformations
provide Miura links to modified equations. These systems are constrai
ned flows of the modified KP hierarchy, for which again a general desc
ription of their bi-Hamiltonian nature is given. The gauge transformat
ions are shown to be Poisson maps relating the bi-Hamiltonian structur
es of the constrained KP hierarchy and the modified KP hierarchy. The
simplest realization of this scheme yields the AKNS hierarchy and its
Miura link to the Kaup-Broer hierarchy.