In [D. Rees, Hilbert functions and pseudo-rational local rings of dimension two, J. London Math. Soc. (2) 24 (1981) 467–479], Rees gave a characterization for the normal joint reduction number zero of two 𝔪-primary ideals in an analytically unramified Cohen–Macaulay local ring of dimension two. Rees’ result is a generalization of Zariski’s product theorem for complete ideals in a regular local ring of dimension two. The aim of this paper is to extend Rees’ theorem for the ordinary powers of 𝔪-primary ideals I and J in a Cohen–Macaulay local ring of dimension two. Following Rees’ approach, we define the modified Koszul homology modules M1r,s(ak,bk) for a joint reduction (a,b) of I and J. Under the additional assumption that the associated graded rings of I and J have positive depth, we obtain a characterization of the joint reduction number zero of I and J in terms of the vanishing of the module M10,0(a,b), as well as in terms of the Hilbert coefficients and the bigraded Hilbert coefficients. More generally, we introduce the joint reduction lattice and study the vanishing of M1r,s(a,b) for any r,s≥0. This gives a characterization for a vector (r,s) to be in the joint reduction lattice of I and J. We also give a cohomological interpretation of these theorems by investigating the local cohomology modules of the bigraded extended Rees algebra. This gives another characterization for a vector (r,s) to be in the joint reduction lattice and also extends a recent result of Masuti and Verma in [Local cohomology of bigraded Rees algebras and normal Hilbert coefficients, J. Pure Appl. Algebra218(5) (2014) 904–918] for ordinary powers of ideals.