This article examines the government purchase of social services in China as a window by which to investigate the evolving relations between the party-state and social organizations. Going beyond the conventional focus on state–non-governmental organization (NGO) dynamics in urban areas, we explore the expanded role of social organizations in rural service provision under state-led campaigns of rural modernization. Engaging with institutional theory and the consultative authoritarianism thesis, we argue that NGOs initially operated in an emerging organizational field where they exercised considerable autonomy in setting agendas and designing services. As the party-state's incentives to utilize and co-opt the social work profession grow, however, we observe a trend towards incorporation, wherein social workers now play a bigger role alongside the strengthening of state control over the sector. Through tracing the inception and eventual termination of a decade-long social service project in Guangdong, this article shows how state incorporation might undermine the future role of NGOs in rural development.