This paper explores the relationship between theories of regulation and governmentality, showing how a synthesis of the two approaches may be used in the analysis of central-local relations. The basis of the current trend towards greater partnership and cooperation in the regulation of local by central government is argued to lie in the linking of increasingly selective imperium and dominium controls with 'responsibilization' strategies involving techniques of accounting, audit, and contracting. Following Nonet and Selznick, the substantive and purposive nature of state action is placed at the centre of the analysis. In this perspective, the ideal of responsive regulation implies not just technical effectiveness, but the harnessing of regulatory forces and 'governmental' resources in endeavours to achieve legitimate regulatory objectives. While New Labour's regulatory style is more likely to prove effective than that of the Conservatives, it may be criticized for a similar failure to implement fundamental values of openness and participation in the determination of regulatory purposes.