This paper uses the experience of a recent programme of action research in Eastern India to reflect on the use of participatory ideals within governance reform. In a situation where there are profound difficulties in local governance, it assesses the potential for participatory forms of stakeholder engagement to begin a process of reform. It criticizes views of reform put forward by both the World Bank and Robert Chambers, and argues instead that critical self-reflection and the construction of alliances among a variety of reform-minded actors are important first steps in building political capabilities to challenge structural blockages to pro-poor governance.