This paper asks whether and under what conditions participatory local government can best nurture indigenous peoples’ democratic practice. Based on fieldwork in two similar Ho communities in the Indian state Jharkhand, we show that their village assemblies function differently with regard to meetings, wood access regulation, development projects, and participation. Neither prevents exclusion and co- option. This supports the argument that while local governments can hardly challenge existing power structures, they can under certain conditions nurture democratic practice and democratisation. Our study indicates that high literacy, social cohesion, active state support, and proactive leadership are conditions under which this best happens.