This article interrogates the operating logic of China's street-level regulatory state, demonstrating that residents’ committees (RCs) assume a role as regulatory intermediaries to enhance the efficiency of local governance. Using Shanghai's new recycling regulations as a case study, it explores the mechanisms by which RCs elicit not only citizens’ compliance but also active participation. We show that the central mechanisms derive from the RCs’ skilful mobilization of particular social forces, namely mianzi and guanxi, which are produced within close-knit social networks inside Shanghai's housing estates (xiaoqu). We advance three arguments in the study of China's emerging regulatory state. First, we show how informal social forces are employed in regulatory governance at the street level, combining authoritarian control with grassroots participation. Second, the focus on RCs as regulatory intermediaries reveals the important role played by these street-level administrative units in policy implementation. Third, we suggest that the RCs’ harnessing of informal social forces is essential not only for successful policy implementation at street level but also for the production of the local state's political legitimacy.