In this paper it is proposed that the territory of governance is curre
ntly being reconfigured by the state. The state is pulling back from a
universalist, welfare role, which entailed comprehensive government o
f the whole national territory. Now a much more selective form of gove
rnment is coming into being, concerned with 'community', 'diversity' a
nd 'locality'. This is not, however, simply a belated recognition by t
he state that these are ever move important features of socio-spatial
life: rather, it is part of the reconfiguration of the territory of go
vernment as the state involves these characteristics in order to modif
y its ways of governing. Using Foucault's concept of governmentality-t
hat is the means used by the state to 'problematise' life within its t
erritorial borders and their net on the basis of these problematisatio
ns-the recent case of the Rural White Paper is examined. It is propose
d that this is a very clear example of a governmental retreat from a c
omprehensive role in the governance of rural areas and shows hero the
state now seeks to govern 'through communities'.