In this article, I explain the establishment of Crown Colony government within the racially diverse colonies of the British Empire through an examination of the reconstitution of the Straits Settlements as a Crown Colony in 1867. My central argument is that the reconstitution of the Straits Settlements as a Crown Colony rested on colonial officials and subjects’ shared understandings of the fragmented and unstable character of racially diverse societies. Such understandings were analogous to J.S. Furnivall’s concept of “plural society” and were generated by the negative images of “native” populations and the precarity of colonial rule. Despite the reception of the common law and its institutions in the colony, these beliefs ultimately justified colonial officials’ repudiation of liberal principles of government and law despite intransigent protests by a minority of officials and subjects. In the Crown Colony of the Straits Settlements, this meant the institutionalization of a constitutional framework and laws that granted the Governor authoritarian powers over the legislature, judiciary, and society to maintain the social order.