Since the mid-2000s, the Chinese government has promoted village modernization under the banner of “building a new socialist countryside.” To explain the origins and outcomes of this policy, this article examines the case of Ganzhou city in Jiangxi province. Ganzhou became a national model for rural development known for involving organizations called peasant councils in policy implementation. The study found that despite an initial emphasis on rural participation and moderate change, the new socialist countryside evolved into a top-down campaign to demolish and reconstruct villages. Three factors shaped this process: the strength of bureaucratic mobilization, the weakness of rural organizations, and shifting national policy priorities. After obtaining model status, Ganzhou's rural policy became more ambitious and politicized, leaving little space for participation. This insight suggests there are both benefits and costs to China's policy process. Despite the advantages of policy innovation, scaling up local experiments may actually undermine their success.