Based on findings from three years of site-intensive fieldwork at the local level, this article presents evidence to suggest that binary governance frameworks like centre–local relations are insufficient to understand certain local regulatory outcomes in contemporary China. I seek to specify a distinct type of local governance that has been emerging in recent years, which blurs existing binary concepts. It can be distinguished along two main dimensions: ostensible structure and modalities of governance. Two cases are analysed to illustrate the ways in which it impacts local regulatory outcomes. The analyses point to the need for expanding our portfolio of approaches to understanding local governance in contemporary China.