Recognition of the significance of public wage employment programmes in tackling unpredictable community “covariate” shocks and ensuring livelihood security of the rural poor has led to the enactment of the Mahatma Gandhi National Rural Employment Guarantee Act, with state guarantee of work. Implementation of the Act, our empirical findings tell us, has become the site of tangible exchanges between state and society, with factors such as the level of material support for it, the balance of power between the local state and the poor on the ground, and the larger socio-economic structure determining programme outcomes.