Since the early 1990s, culture has come to be recognized as a significant regional development resource in China. This paper raises the question of whether cultural strategies of development have ameliorated or exacerbated the government's increasing inability to provide for the public's basic needs. Specifically, it asks: what are the implications of China's cultural strategies of regional development for local-level governance? Three case study villages in Guizhou are examined, each revealing different ways that villages have engaged state development strategies, each with different outcomes. I argue that cultural strategies of development in China introduce a capital logic that greatly influences village governance. Cultural strategies create economic value where none before existed and thus initiate new struggles over ownership among villagers, state actors and entrepreneurs. The privatization of cultural resources has presented new challenges to village governance even while it has been promoted as both an answer to the fiscal challenges faced by many rural communities and a key to the establishment of a new kind of rural citizen.