Rural China has been experiencing a dramatic social transformation since the early 20th century. This case study is a micro-level reflection of this transformation. My own village of Xiaogang is a peripheral but historically important village in Central Eastern China. On 20 February 1978, when the Chinese countryside was still under the system of collectivisation, 18 villagers secretly signed a contract to decollectivise the land and contract it to each household, marking the end of rural communisation. This Household Responsibility System (HRS or Dabaogan) and its aftermath are the focus of my study. Using data from a four-year period of fieldwork undertaken in Xiaogang Village, I explore the various options open to farmers in the development of their local economies. In particular, I focus on two forms of cooperation, collectivist and noncollectivist, examining how local participants were recruited and how cooperative goals became institutionalised. The powers involved in the process of cooperation are my main analytical concerns.